The Mature Panel Industry Makes The Profit Of Manufacturers Low

The panel industry is becoming mature nowadays; therefore the manufacturers are facing the challenge of profit reduction. More technologies are needed by them, and the production needs to be strengthened. In the past ten years, the TFT-LCD panel industry is in the circle of boom and depression. The years between 2001 and 2006 were the high peak of the manufacturers. Their profit could reach ten percent to twenty percent in these years. Although the industry was always booming from the third quarter of 2008, the profit rate of the manufacturers was lower than ten percent. Meanwhile, the profit of the TFT-LCD panel industry is also reducing.

The production utilization rate of the second line manufacturers is very low, which will become very normal. In the aspect of scale and competitiveness, the second line factories become harder and harder to compete with the large factories. When the short supply is happening, the second line factories are unable to improve the production quickly. Facing with the low rate of return, the panel manufacturers are trying to develop more technologies, add the new production, new business mode and more vertical integration. When it comes to the production distribution, more and more advanced production lines are used for cutting the small-size panel. For example, the sixth generation lines are used by the monitor and laptop computer; the fifth generation lines are used by the multiple-unit panel; the third and forth generation lines are used by the cell phone and other devices.

In the aspect of new technology, the factories are developing actively. The directions include the LTPS, AMOLED, IPS/FFS, LED backlight, 3D and so on. In the past days, prompting the customers to change the traditional CRTTV into LCD TV was the focal point of television market; however, changing the LCD TV to the newer LCD TV, such as LED backlight, 240Hz, 3D in 1080p, is the most important thing in the market now. Among the next generation of display technology
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