An in-depth interpretation of the development of China's OLED industry. With the gradual control of the new crown epidemic in China, the process of resuming work and restarting production in all walks of life has accelerated. A number of smart phone companies have launched new models one after another, and folding phones are the highlight. The Samsung Galaxy Z Flip foldable phone was sold out immediately; Huawei's upgraded foldable phone, the Mate Xs, was hard to find, and it was even dubbed as a "financial product" by the "ox party". As the most important component of folding mobile phones, OLED has also received unprecedented attention and attention.
In recent years, Chinese enterprises have continuously made efforts in the field of OLED, and the development momentum has been steadily improving. It has become the second country after South Korea to have large-scale production capacity of flexible AMOLED panels. Although the new crown epidemic has not had a major impact on the normal development of China's OLED industry, problems such as poor logistics and shortage of personnel have also caused problems for enterprises, especially the lack of raw materials and the imbalance of the industrial chain system have brought about normal production and construction of enterprises The difficulties cannot be ignored. In general, in 2020, in order to make up for the losses caused by the epidemic, major mobile phone companies will accelerate product upgrades and promote the rapid development of China's OLED industry; the impact of the lack of the industrial chain will promote the deepening of upstream and downstream enterprises With cooperation, China's materials and equipment are expected to usher in a period of development opportunities.
Downstream product upgrades push China's OLED industry into the fast lane of development
OLED panels have foldable and bendable characteristics, which can completely change the existing forms of current smart phones, even tablets and laptops. In order to maintain their competitiveness, China's overall terminal enterprises actively cooperate with AMOLED panel companies to develop various folded and curved mobile phones in order to increase high-end market share. Driven by market demand, China's OLED industrialization process continues to accelerate. As of February 2020, 25 AMOLED production lines have been completed worldwide, 3 production lines are under construction, and 2 are planned. Thirteen production lines have been completed in mainland China, with a total investment of nearly 500 billion yuan, of which 6 are 6-generation lines that can produce flexible panels, and 2 are each under construction and planning. By 2022, after all the AMOLED production lines currently under construction around the world are completed and full production is expected, the total production capacity is expected to reach 33 million square meters per year, of which the total production capacity in mainland China (including LGD's mainland production lines) will reach 19 million square meters / In 2006, the global share reached 58%.
Cooperation between upstream and downstream enterprises brings opportunities for the development of materials and equipment
At present, China has become one of the important countries in the global production of OLED panels. However, China's upstream materials and equipment are still concentrated in the low-end and non-critical materials. Taking organic light-emitting materials as an example, general auxiliary materials account for 12% of the domestic market Around, organic light-emitting materials account for less than 5%. In the field of equipment, the domestic dependence of our domestic line is announced, and the market share is basically monopolized by the industry oligarch. Among them, the exposure machine is monopolized by Canon and Nikon, and the top three global market share of deposition equipment reaches 70%. Annealing, etching, and laser stripping The total market share of the first two devices of such equipment is 85%, 75% and 90% respectively.
China is a late-developing country in the new-type display industry, with a weak industrial foundation. The number of OLED materials and equipment companies is small and the scale is small. The development of supporting companies does not match the pace of panel companies' line-up. It is a technological innovation and supply chain security for our OLED industry. And product upgrades are very unfavorable. During the new crown epidemic period, China's OLED companies have encountered problems such as tight raw material inventory and poor equipment maintenance.
In order to ensure the healthy development of the industry, as China's OLED production line continues to increase its production capacity, cooperation with upstream supply chains will be closer. On the one hand, the huge panel scale needs to form a stable supply chain system to ensure production safety, and the common progress of upstream and downstream companies has an important role in the development of new products and cost control for panel companies. On the other hand, the material and equipment market will also increase rapidly. Materials used in a 6th generation flexible AMOLED production line include substrate glass, polyimide paste, organic evaporation materials, high-purity metal electrode materials, photoresist, targets, masks, polarizers, wet chemicals and There are more than two dozen types of special gases, including more than 200 kinds of materials (calculated by chemical formula). Among them, the OLED organic materials market alone is expected to exceed $ 4.5 billion by 2022. Therefore, after the epidemic, China's OLED companies will further realize the importance of forming a healthy and efficient supply chain ecosystem, the localization process of the supply chain will be accelerated, and new development opportunities will be ushered in for materials and equipment companies.
Post time: Mar-13-2020