LCD panel is becoming the most fragrant baboon in the real industry.
News over the past two days:
On July 25, TCL Group announced that it planned to issue shares to buy 10.04% of Huaxing Optoelectronics, with an issue price of 3.1 yuan per share and a transaction price of 4.034 billion yuan. After the acquisition, TCL will directly hold 85.71% of Huaxing Optoelectronics.
On July 26, Foxconn announced that it would invest $10 billion to build a LCD panel plant in Wisconsin in the next four years, creating 3,000 jobs in Wisconsin and having the opportunity to reach 13,000 people.
Prior to this, Huaxing Optoelectronics and Foxconn have announced that they have invested more than 50-60 billion yuan in new LCD panel projects in Shenzhen and Guangzhou respectively. Guangzhou Chuangliyou Machinery Equipment Co., Ltd. specializes in the production of LCD maintenance equipment, pulse screen presses, large-scale screen presses!
LCD panel industry is the most successful case of China's real industry in the past 20 years.
In 2005, the global share of the continental panel was less than 1%, which was controlled by Japanese, Korean and Taiwan giants such as Samsung, LG, Sharp, Youda and Chimei, and industrial restrictions were imposed on the mainland of China. LCD panels for Chinese TV and mobile phones can only rely on imports.
Today, LCD panels in mainland China account for more than 30% of global shipments, forcing Korea to surpass Japan.
Why is LCD panel so important?
Change Trend of Four-floor Enterprises: Rise of Mainland China
It's the most expensive part of a cell phone.
It connects the upstream and downstream of the global electronics industry to the greatest extent, and is the backbone of the chain of electronics industry. Guangzhou Chuangliyou Machinery Equipment Co., Ltd. specializes in the production of LCD maintenance equipment, pulse screen presses, large-scale screen presses!
Upstream is a large number of key raw materials and components: glass substrates, polarizers, filters and so on.
Downstream is the intelligent terminal of TV, mobile phone, tablet, automobile, entertainment, medical and other industries.
Display panel industry has become the fourth largest manufacturing industry in the world after petroleum, steel and chemical industry.
In China's imported industrial products, display panels have long ranked third behind semiconductors (chips) and automobiles. Large household consumption.
Up to now, the key materials, components and process equipment of domestic LCD panel are still imported in large quantities.
However, with the rapid improvement of display panel localization, the upstream core components are also accelerating localization.
This is an industry chain with a huge long tail, and with the trend of Intelligent Material Link, the demand for future applications is endless. Guangzhou Chuangliyou Machinery Equipment Co., Ltd. specializes in the production of LCD maintenance equipment, pulse screen presses, large-scale screen presses!
Global market share of LCD panels in the past three years
Take Huaxing Optoelectronics, the fastest growing company, as an example, when construction started in 2010, the market share of domestic LCD panels was only 3.9%. Basically, only one company in Beijing Oriental was struggling, because the continuous loss became the object of continuous vent for the majority of shareholders.
As the largest LCD TV market in the world, China mainland relies on imports for large LCD panels.
TCL first cooperated with Samsung, then introduced Taiwan Engineer team, and quickly opened up the situation with an 8.5 generation LCD panel production line.
At the beginning of the establishment of the factory, the workshop was not without criticism.
1. The Shenzhen Municipal Government has given a large amount of financial subsidies and debt relief, but it is still difficult to make profits in the initial stage.
2. Question about the overcapacity of the whole industry.
3. At that time, he was recruited by Li Dongsheng into Taiwan's top management team. He was also involved in a lawsuit for "technology leak". Guangzhou Chuangliyou Machinery Equipment Co., Ltd. specializes in the production of LCD maintenance equipment, pulse screen presses, large-scale screen presses!

Now, Huaxing Optoelectronics is the second largest LCD panel manufacturer in mainland China. In 2016, China Star Optoelectronics accounted for 24% of the total panel purchases of the six major TV brand manufacturers in China, ranking first, and the domestic market share of 55 inch products ranked first.
In 2016, the market share of Huaxing Optoelectronics Global Television Panel was 13%, ranking fifth in the world, and the market share of 32 inch products ranked second in the world. In the first quarter of 2017, Huaxing Optoelectronics occupied 15% of the global TV panel market, ranking fifth in the industry.
Among the two major LCD panel factories in mainland China, Beijing Oriental is recognized as the enterprise with the longest investment time, the most hardships and the deepest accumulation.
Huaxing Optoelectronics is the fastest growing, most efficient and most profitable enterprise. TCL, the major shareholder, is itself a TV giant. There is synergistic effect of industrial chain.
The return of TCL's heavy investment and sustained support is that Huaxing Optoelectronics has become TCL's best asset.
In 2016, Huaxing Optoelectronics revenue was 22.3 billion yuan, with net profit of 2.31 billion yuan. In the first half of this year, Huaxing Optoelectronics continued to maintain full production and full sales. The production line of T1 and T2 increased 31.2% year-on-year, and the T3 production line realized small-scale delivery. Previous TCL announcement: Huaxing Optoelectronics is expected to increase its profits by more than 50% year-on-year in 2017.
Grabbing the Future: The Upgrading War of China's Electronics Industry
However, the competition in LCD panel industry is still fierce, with different emphasis on technology and future layout. One of the most concerned areas is OLED. Apple's iPhone 8 has announced that it will use OLED screens.
Samsung is currently the dominant company in this field, with AMOLED market share accounting for more than 95% of the world's total.
Chinese enterprises do not want to lag behind in this rush.
In addition to the three production lines currently in mass production, Huaxing Optoelectronics also carries out strategic layout in the field of large and medium-sized OLED panels. The 11th generation LCD panel production line is under construction. The 6th generation flexible LTPS-AMOLED display panel production line project, which invested 35 billion yuan, was formally piling in Wuhan in June. The product is positioned as a high resolution, foldable smart phone display panel.
In 2016, Beijing Dongfang invested 100 billion yuan to build two six-generation flexible AMOLED panel production lines in Chengdu and Mianyang.
Foxconn has been betting more than 60 billion yuan on ultra-high-definition liquid crystal panel production lines in both Guangzhou and Wisconsin. Guangzhou Chuangliyou Machinery Equipment Co., Ltd. specializes in the production of LCD maintenance equipment, pulse screen presses, large-scale screen presses!
Foxconn said that from the new generation of TV sets to automatic driving cars, flight systems, and then to intelligent education, entertainment, health care, advanced manufacturing systems, and office automation, interactive new retail, safe life and so on, the LCD panel will be widely used in the future, which will affect the daily life of many consumers. Science and technology.
After TCL acquired 10.04% of Huaxing Optoelectronics, it directly held 85.71% of Huaxing Optoelectronics, and 11.00% and 3.28% of Guokai Fund and Guangdong Finance Trust, respectively. But the latter two are only financial investors, that is to say, TCL actually completely controls Huaxing Optoelectronics.
At the same time, TCL said that it would make Huaxing Optoelectronic's main managers and core employees hold shares of listed companies, improve the company's equity incentives and talent attraction.
For TCL Group, apart from the net profit of 350 million to 400 million yuan, it will integrate the upstream panel industry into the downstream color TV business from the capital level.
Due to the fierce competition in the domestic color TV industry, the profit and loss of color power plants are closely related to panel price fluctuation, and the vertical integration advantage of TCL industry chain will be further highlighted in the future.
From the orientation of the electronic giant, we can see that the most important thing in the future industry.
TCL is tilting from downstream to midstream, Foxconn is tilting from upstream OEM to midstream, and Samsung, which manages chips, panels and consumer electronics, is also putting the most important treasure on the panel.
This battle is a battle for the upgrading of China's electronic industry.

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