In the eyes of the outside world, BOE has always been a magical company.
As early as 2015, it invested as much as 40 billion yuan in a bet and built the first 10.5-generation LCD panel production line in Hefei. You know, Sharp was losing money after the 10th-generation line was put into operation, and South Korean manufacturers such as Samsung are turning to OLED technology. Therefore, this move was once degraded by the outside world, believing that it was betting and would even repeat Sharp's mistakes.
Over the years, BOE has indeed caused huge losses due to continuous construction of panel production lines. Therefore, in the eyes of investors, BOE has been dubbed "the Phoenix" and "the king of burning money" - the scale of enterprises has continued to rise, while corporate efficiency has continued to slump.
However, since the price of LCD panels has continued to rise since last year, BOE has gradually ushered in the spring, and its multiple production lines have continued to reach full-scale sales. In the first quarter of this year, BOE's performance was slumped and its net profit was as high as 2.4 billion yuan, a 21-fold increase over the previous year.
This time, BOE once again deployed Wuhan 10.5-generation TFT-LCD production line, undoubtedly for the large-size LCD TV market, which will also make BOE's competitiveness in the field of large-size LCD panels significantly improved. In this regard, BOE also said that it is mainly based on ultra high-definition (8K) and large-size display market demand, because this trend has been clearly visible, and the potential demand is strong.
Consumer demand gave birth to the 10.5 generation lineWith the increasing display technology, LCD panels have become an inevitable trend toward large-scale, ultra-high definition. The demand for large-screen TVs by consumers has led to a steady increase in the average size of the global TV panel, and an accelerating process of large-size TVs, which has led to a continuous increase in the demand area. Especially for the 65-inch LCD panel products, the most economic cutting efficiency is the 10.5 generation line.
What does the so-called 7th Generation Line, 8th Generation Line and 10.5 Generation Line mean? Why is the higher the algebra, the better?
It is reported that "X-generation line" is a professional term in the field of LCD panel production. Because no matter how big the panel is, it needs to be cut out from a whole piece of panel. The higher the production line generation, the larger the substrate size it produces, and the larger the screen size that can be cut.
For example, the 7th-generation glass substrate has a size of 2200mm×1870mm, and can cut eight 42-inch TV panels or six 46-inch TV panels; the size of 8th-generation glass substrates is 2400mm×2160mm, and 8 can be cut. An inch TV panel, or six 52-inch TV panels; the 10.5-generation line of glass substrates measures 3,370 x 2,940 mm, and is primarily used to produce 65-inch and 75-inch panels.
In fact, with the increase of production line algebra, not only can a larger panel size be produced, but also the manufacturing cost is gradually reduced. This also means that we can buy larger, cheaper TVs.
Panel industry or usher in a big shuffleIt is reported that in 2017, the increase in the average size of television has slowed down due to the sharp rise in the previous period, and the average annual size is expected to be 44.1 inches, an increase of 1.4 inches. By 2022, the average size is expected to exceed 50. inch. The steady advancement of the large-scale global TV panel will undoubtedly bring development opportunities to the 10.5 generation line. Therefore, the current giants are eager to accelerate the layout in the high-generation panel area.
In the next five years, there will be six mass production of 10.5 lines, which will lead to a rapid growth of 10.5 line capacity. It is estimated that by 2022, the capacity of the 10.5-generation line will account for nearly 30% of the production capacity of the high-generation line (more than 7 generations), which will become the main production capacity for TV panel production.
In fact, with the successive construction of contour lines of the 10.5 generation line of Wuhan BOE, the global TV panel market will obviously usher in a major reshuffle.
Previously, the 65-inch and 75-inch TV panels were mainly produced on the 6th to 8.5th generation lines, and the cutting efficiency was low. However, on the 10.5 generation line, 8 and 6 wafers could be cut, respectively, and the cutting efficiency would be greatly improved. The large-scale economic cutting benefits of the 10.5-generation line will undoubtedly guide the global TV panel's production dominance to the 8.5 generation or higher production line.
Therefore, when the 65, 75-inch and other large sizes gradually become the next mainstream TV product, the survival space of the 6th generation line, 7th generation line, and 7.5th generation line may be further squeezed.
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