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>> LCD screen falls below cost price? BOE and TCL are under great pressure to cut single driver chips 15th,June,2022
A few days ago, Samsung stated that it will officially withdraw from the LCD market and fully turn to more advanced screen technologies such as OLED, QD, and miniLED. Why Samsung no longer produces LCD screens, the reason is that the price is too low, and it is already losing money.
According to the agency's data, the price of LCD screens in January 2014 was the highest. If it was set at 100, it would be only 41.5. In June last year, the price was 87, which means that it fell by half this year. many.
At the same time, it is expected that by the third quarter, it will drop to 36.5, which is only one-third of the price in the previous peak period.
LCD screen falls below cost price? BOE and TCL are under great pressure to cut single driver chips
According to experts, LCD screen manufacturers can only make money if the price of LCD screens exceeds 45. Once it is lower than 45, manufacturers with good cost control may have small profits, and manufacturers with poor control will lose money. Therefore, Samsung resists No longer live, no longer produce LCD screens.
Why has the price of LCD screens dropped so much? First, the current consumer electronics market demand is weak. In the two years of 2020 and 2021, the outbreak of the home economy has greatly increased the sales of PCs, TVs, tablets, etc., but after retaliatory consumption, they have finally stopped rising. Sales of mobile phones, etc. have plummeted and plummeted this year!
Second, in the two years of 2020 and 2021, because the demand for LCD screens has greatly increased, manufacturers are expanding production, and production capacity has increased rapidly, but now the demand is reduced and production capacity is increasing again, which means that there is excess production capacity.
LCD screen falls below cost price? BOE and TCL are under great pressure to cut single driver chips
According to wind data, the inventories of manufacturers are quite high at present, with an average of 8-12 weeks, which is 2-4 weeks higher than the normal level of 6-8 weeks.
In the first quarter, the inventory value of TCL Technology, Visionox, Longteng Optoelectronics, and Rainbow shares all increased by more than 50% year-on-year, and the inventory value of Rainbow shares increased by 125.12% year-on-year.
That is to say, the LCDs produced cannot be sold, and they are accumulated in the warehouse. Next, the major manufacturers have to find a way to destock, and it is impossible not to cut prices.
LCD screen falls below cost price? BOE and TCL are under great pressure to cut single driver chips
According to media reports, many screen manufacturers, such as BOE, TCL, etc., have already begun to cut orders for driver ICs, because production has begun to adjust. The upstream driver IC manufacturers have also cut the number of wafer foundry production, and the rate is even as high as 30%.
The entire driver IC and LCD screen market will no longer be in short supply, but will return to the traditional cycle of low and high seasons, and now the low season is coming.
BOE is the world's largest LCD screen manufacturer, and TCL is the world's second largest LCD screen manufacturer. The LCD screen falls below the cost price and the demand is weak, which will be the most affected.
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