In the past, the global market for large-size panels was dominated by South Korean manufacturers. However, this trend is shifting rapidly. According to recent data from WitsView Research Center, China is set to surpass South Korea in 2017 as the largest supplier of large-size panels. By 2020, China's supply share is expected to reach nearly 50%, signaling a major shift in the industry.
Wang Jingyi, a senior research manager at WitsView, noted that government support and strong domestic demand have driven major panel manufacturers to expand their production facilities in China. Meanwhile, South Korean companies like Samsung and LG have been reducing their fifth-generation capacity in the country. Samsung even shut down its seventh-generation line in 2017, contributing to China's rise in the market.
In 2017, China's large-size panel supply rate reached 35.7%, making it the top supplier globally, followed by Taiwan with 29.8% and South Korea with 28.8%. This marked a significant change from 2016, when South Korea held the highest share at 34.1%, followed by mainland China at 30.1% and Taiwan at 28.9%.
The global production of large-size panels in 2017 reached 247 million square meters, with only a 1.3% annual growth—the lowest in three years. However, the introduction of six new 10.5-generation lines between 2018 and 2020 is expected to boost production significantly. The growth rate could rise to 8–9% annually, pushing total output to 318 million square meters by 2020.
BOE Hefei’s 10.5-generation line is set to go into mass production in 2018, marking a new phase in large-size panel manufacturing. Other companies, including Huaxing Optoelectronics, LG Display, BOE Wuhan, and Foxconn, are also planning to launch similar lines in the coming years.
Despite these developments, the expansion of 10.5-generation lines poses risks. With each line producing about 1.8 times more glass than an 8.5-generation line, the potential for oversupply is growing. Some manufacturers are hesitating to invest due to financial concerns.
According to IHS, the large-size TFT-LCD market continued to grow in 2017 despite slowing demand. Unit shipments reached 688 million, up 1%, while area shipments increased by 6% to 180 million square meters. Tablet displays saw the highest growth, with a 10% increase to 93 million units, followed by laptop screens, which rose 4% to 175 million units.
Peter Su, an analyst at IHS, highlighted that Chinese manufacturers are expanding aggressively, while top-tier players are scaling back. TV display shipments declined by 3% year-on-year to 257 million units, but they still accounted for 78% of the total large-screen area, with a projected 5% growth in 2017.
Leading panel makers, especially from South Korea, are focusing on larger TVs (49 inches or more) to improve profitability, while reducing smaller, lower-margin models. Chinese manufacturers are following suit, increasing production of 43-inch and larger TVs.
Although large-panel prices remained high in 2017, the domestic sales slowdown and rising North American prices led to a 5.2% year-on-year drop in global LCD TV shipments in Q2. However, price pressure eased slightly in May and June, though panel makers still struggled to meet TV brands' demands for lower prices.
By August, panel prices dropped sharply across all sizes, especially for 55-inch, 65-inch, and mid-sized panels. As a result, some TV manufacturers, like Xiaomi, began lowering their prices to gain market share. Xiaomi announced a price cut in September, citing falling raw material costs. It became the first brand to fully reduce TV prices, adjusting them by around 1,000 RMB. Wang Chuan, co-founder of Xiaomi, explained that after a sharp rise in material costs last year, the current decline allowed the company to adjust its pricing strategy.
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