If they cant match up with the Chinese enterprises, the more they produce, the more they lose money, the Korean panel factory will clean up the backward production line.

 If they cant match up with the Chinese enterprises, the more they produce, the more they lose money, the Korean panel factory will clean up the backward production line.

In the field of LCD panels, Korean panels giants intend to stop losses in the face of the capacity offensive of Chinese enterprises.

According to South Koreas News1 news network reported on September 8, panel industry said that LG, Samsung and other Korean manufacturers will implement the human structure adjustment measures matching the production line adjustment plan.

The two manufacturers will shift their focus to OLED (Organic Light Emitting Diodes) while adjusting the production of LCD panels.

Screenshots of News1 Report

According to the report, the 10.5 generation LCD (liquid crystal panel) factories of Chinese panel manufacturers can support the cutting of 8 65-inch panels, compared with the main production lines of Korean enterprises, which are only 8.5 generations, and the same 65-inch can only cut 3 panels.

On the other hand, the Chinese enterprises that strive to increase production are not only Beijingdong, which surpasses the Korean enterprises and takes the lead in LCD. Greater China Circle enterprises, including Huaxing Optoelectronics and Foxconn, have successively begun to work in 10.5-generation LCD factories.

Therefore, in the case of production efficiency and cost lagging behind China, if Korean enterprises force production, they will only produce more and lose more.

Photo Source of a Panel Factory in LG: News1

News1 confirms from LG panel that the other side is considering human resource restructuring news, but the specific implementation rules have not yet been negotiated with the trade union, and can not be finalized.

Samsung officials said that after deciding to shift the focus of production to OLED (organic light emitting diodes), they had started to regularly clean up the backward LCD production line and gradually carry out human restructuring, so there would be no one-time large-scale layoffs.

Compared with Samsung, which has already restructured large LCD production, LG will face a much larger scale of human restructuring.

According to the report, Samsungs panel suffered a loss of 560 billion won (about 3.35 billion yuan) in the first quarter, while LGs panel suffered a loss of 50.7 billion won (about 3 billion yuan) in the first half of this year. According to a previous report in the Korean Daily, the profit of Beijing Oriental, a Chinese panel company, was 1.25 billion yuan in the first quarter, and that of Tianma Group was 290 million yuan.

Both companies chose to bet on OLED while restructuring LCD production.

Li Zhengrong inspects Yashan QD-OLED panel factory? Photo source: News1

The board of directors of LG panel held in August this year decided to invest 3 trillion won in the 10.5 generation OLED production line of Pozhou P10 plant. Samsung added code quantum dot OLED (QD-OLED), decided to convert an eighth generation LCD production line in Yashan into QD-OLED production equipment.

Samsung expects QD-OLED to be a breakthrough for the recent downturn in large panels, a person in charge revealed. Last month, Samsung Electronics Vice President Li Jirong also visited Yashan QD-OLED panel factory, saying that only technology is the way to go, and we need to speed up the development of new technologies.

According to a previous report released by Qunzi Consulting, global shipments of LCD TV panels in the first half of this year were about 140 million, up 3.6% from the same period last year, and the shipment area was about 77.34 million square meters, up 10.4% from the same period last year.

In the first half of the year, the global shipment share of panel factories in mainland China reached 45.8%, accounting for nearly half of the total. Beijing East ranked first, surpassed LG again after the first quarter. Taiwan Qunchuang Optoelectronics ranked third, followed by Huaxing Optoelectronics under TCL, and Samsung ranked fifth.

Beijing Oriental shipped 27.6 million units, exceeding LG, but slightly lost to LG in the area of shipment. The latter shipped 22.65 million pieces, and the area of shipment can maintain a little advantage.

Source: Editor-in-Charge of Observer Network: Wang Fengzhi_NT2541