Chinese LCD Panel Makers Benefiting From Limited Panel Supply Out of Korea

Rising concern about LCD panel availability from Korean suppliers is forcing TV brands to revise sourcing strategies and shift to Chinese suppliers, said IHS Markit Tuesday. Korean LCD TV panel makers are undergoing fab restructuring and shutdowns this year, sending TV brands to China for their display needs, said analyst Deborah Yang. The global top-three TV brands are expected to bump their 2020 purchasing from Chinese suppliers by 35 percent year on year to 62.6 million displays. A competition between BOE Technology and China Star Optoelectronics Technology is intensifying, particularly with panel supplies from Gen 10.5 fabs, said Yang. Supply availability is improving at emerging Chinese panel makers such as HKC, Nanjing CEC-Panda LCD Technology and Xianyang Caihong Optoelectronics Technology, said the analyst, which will help global TV brands Samsung, LG and several Chinese firms. Though panel supply still exceeds demand, top-tier TV brands are signing long-term supply agreements with captive and selective external panel suppliers to ensure they get the highest priority business, said the analyst.