LCD (Liquid Crystal Display) display is a type of flat-panel display (FPD). It uses the physical characteristic of liquid crystal and backlight technology to produce images. We find them in many electronic devices, such as televisions, computer monitors, mobile phones, tablets, digital cameras, etc.
Overview of China’s LCD Industry
The worldwide demand for electronic devices is increasing. China is the biggest producer of LCD displays in the global market. In addition, China LCD Manufacturers have lower labor and production costs. Therefore, the country’s LCD industry has grown quickly in recent years, including monochrome LCDs and color TFT displays.
Importance of China’s LCD Display Manufacturers in the Global Market
China’s LCD display manufacturers have become very important in the global market. Many big electronics companies get their OLED and LCD screens from them. This has led to strong competition and lots of innovation in FPD technology.
In general, you should pay attention to China’s LCD display industry. You may find the key to driving your company’s growth.
History of China’s LCD Display Industry
Development and Growth
The history of China’s LCD display industry started in the late 1980s. The Chinese government wanted to develop high-tech industries, including displays.
At first, they focused on cathode ray tube (CRT) displays. However, the rise of LCD technology made them shift towards developing LCD displays. The reasons include the following:
In the 2000s, the LCD industry grew rapidly In China.
Firstly, China joined the World Trade Organization (WTO).
Secondly, the growth of the consumer electronics market is increasing.
Thirdly, China has the advantages of low labor costs and favorable government policies. Then, China attracted many foreign investors to build manufacturing factories for LCDs here.
Changes and Challenges
However, in recent years, the LCD industry has faced challenges such as overcapacity, price wars, and slowing demand. As a result, many factories have struggled to maintain profitability, and some even have shut down their operation. To address these challenges, the Chinese government implemented policies aimed at promoting new technologies.
For example, in 2016, the government launched the “Made in China 2025” initiative. It aims to transform China’s manufacturing sector by developing advanced technologies, including OLED and microLED displays.
Future Trends
Despite the challenges, China’s LCD display industry is still a significant player in the global market. In fact, a report by IHS Markit shows that China shares the global LCD panel market from 5% in 2002 to 40% in 2018.
In the future, the industry will continue to overgrow. Meanwhile, due to the rise of 5G technology, many mobile devices demand high-resolution, high-speed displays. The Chinese government focuses on developing new technologies and promoting innovation. That is likely to lead to the emergence of new players in the industry and increased competition.
The future of China’s flat-panel display industry looks promising. However, manufacturers should still adapt to the changing market conditions and continue to innovate.
Major China LCD Display Manufacturers
China has some of the world’s largest and most advanced LCD display manufacturers. Their products are highly popular in China and other countries.
The biggest China display panel manufacturers include BOE Technology, China Star Optoelectronics Technology (CSOT), Tianma, and HKC.
BOE
BOE is the largest LCD manufacturer and the top AMOLED supplier in China. It was established in 1993 and is headquartered in Beijing. Their 4 G6 AMOLED production lines can produce flexible OLED displays.
Some companies, like Apple, Huawei, and Xiaomi, have authorized it as the screen supplier of their mobile phones. They have excellent technology and can produce 110-inch, 8K TFT LCD displays.
In the first half of 2021, their revenue reached $20 billion, a 90% increase from the same time in 2020. They make most of their money from TFT LCD screens and AMOLED displays. They produced 25 million flexible AMOLED displays in the first half of 2021. BOE also makes Micro LED displays, which account for 0.25% of their total revenue.
In 2022, Apple purchased 223 million AMOLED screens for iPhone. And 14% of these screens came from BOE. Samsung also purchased 3.5 million displays from BOE for their Galaxy screens.
As a member of the Chinese LCD manufacturer, Go2Display also has a cooperative relationship with BOE. We will obtain lower prices large size LCD and OLED screens as a distributor of BOE for our clients. At the same time, we use LTPS TFT and large-size a-Si TFT LCD panels from BOE to manufacture LCD modules.
CSOT
China Star Optoelectronics Technology (CSOT) is China’s second-largest TFT LCD manufacturer. It was established in 2009 and is a sub-company of TCL. CSOT has eight TFT LCD panel plants and four TFT LCD module plants in various cities in China and India.
They produce display panels and modules for TV and mobile products. The main displays include TFT displays, AMOLED, Mini-LED, Micro-LED, and flexible OLED displays.
Tianma
Tianma is the third-largest LCD manufacturer in China. The same as Go2Display specializes in medium and small-sized displays.
Tianma focuses on STN, TFT, LTPS technology, color filters, and backlights. They also produce displays using AMOLED technology. And they also provide touch module solutions based on resistive and capacitive touch screens.
Their revenue in the first half of 2021 was $2 billion, a 60% increase from last year. They are headquartered in Shenzhen and have over 30 years of experience in the display market.
Tianma is the leader in medium to small-sized LCDs in China. LTPS TFT displays are their key products. They located several TFT panel factories in some Chinese cities.
They support various applications, such as smartphones, tablets, wearables, automotive, instrumentation, medical, and more.
Advantages of China LCD Display Manufacturers
The major China LCD panel manufacturers have several competitive advantages. These advantages can help them to grow and succeed in the global LCD industry.
Advanced technology and innovation: Chinese LCD display manufacturers have invested heavily in developing advanced technologies. That can help them meet the various needs of their customers.
Economies of scale: These manufacturers have a large domestic market for their products. That helps them produce displays at lower costs and sell them at competitive prices.
Government support: The Chinese government has supported the flat panel display industry.
However, these companies still have to face challenges. They have to:
- Keep up with new technology
- Compete with other manufacturers in China or other countries
- Manage their costs.
China’s LCD Industry Supply Chain
The LCD industry in China is growing rapidly. There is a well-organized supply chain with many different companies. Let’s take a look at the parts of this supply chain:
Raw Material Suppliers
The first part of the LCD industry supply chain is getting raw materials, like glass substrates, backlight units, and polarizers. Companies like Corning, AGC, and Nippon Electric Glass supply these materials to LCD display manufacturers.
LCD Panel and Module Manufacturers
LCD panel manufacturers are the key players in the LCD supply chain. They produce the actual panels, which are the basis of LCD displays. Meanwhile, they also make LCD display modules assembling the LCD panel, IC, backlight, PCB, FPC, and other parts.
Besides the leading LCD panel manufacturers in this industry, China has many other small to medium LCD module manufacturers. They cannot produce the most high-end display screen.
However, they focus on medium and low-end LCD displays. That results in their better price advantage and a better understanding of customers’ needs in the niche market. Go2Display is just one of these medium and small-sized LCD or OLED display module companies.
Though. LCD manufacturers will produce LCDs for the niche market. Go2Display is just one of these companies for small and medium-sized LCD, Touchscreen, and OLED display modules.
Assembly and Testing Companies
After manufacturing, the LCD and LCM are sent to assembly and testing companies. These companies test them to ensure they work correctly. Then they will integrate these displays into their products, like smartphones, notebook computers, tablets, wearables, and other electronic devices. Cars, industrial LCDs, and medical equipment also need these displays.
Distribution and Sales Channels
The final link in the LCD supply chain is the distribution and sales channels. Chinese sell the final electronic products through various channels such as retail stores, online marketplaces, and OEMs.
Overall, China’s LCD display industry has a strong supply chain supported by many companies. The Chinese government supports this industry. And China has a large domestic market and skilled workers. Therefore, China is poised to continue its global LCD industry dominance in the coming years.
FPD Market Trends
China’s LCD displays manufacturers are keeping up with the fast-changing market by exploring new technologies and applications. The following flat panel display technology is the organic light-emitting diode (OLED) display. OLED displays can offer better colors, contrast ratio, and use less power than traditional LCDs. Chinese manufacturers are investing much money into OLED technology to make more premium displays for smartphones, televisions, and other consumer electronics.
OLED displays are also known for their flexible characteristic. You can bend, curve, or roll them without ruining the picture quality. That benefits wearable devices, smart home appliances, and car displays.
More and more people are buying electronics like smartphones and TVs. Therefore, China’s LCD market has grown steadily over the last few years. A report by Grand View Research shows that the global LCD market was worth $115.48 billion in 2020, and it’s still growing at a rate of 4.3% from 2021 to 2028.
China’s LCD display manufacturers make cost-competitive products and have advanced manufacturing capabilities. As a result, they are still the leaders in the global market. The government offers tax incentives and subsidies to support the LCD industry’s growth.
However, Chinese LCD manufacturers still face challenges. Competition from other Asian countries, such as LCD manufacturers in Japan and South Korea, is fierce. At the same time, China’s labor costs have been slowly increasing. Finally, they must also follow the new technology and purchase new equipment to upgrade the production line.
These challenges also create opportunities for them to innovate and differentiate their products. They can make fully customized displays and display modules to meet customer needs. They are also exploring new markets, like automobile, industry, medical devices, digital signs, and gaming displays.
In conclusion, China’s LCD display manufacturers will still keep growing because of new technologies and applications, the government’s support, and the sale of electronics. Even though there are some challenges, they can use them as opportunities to improve their products and gain more market share.