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2019

05/15

What impact will China's LCD and LED display boards have on panel manufacturers such as Beijing Oriental?

In response to the 25% tariff imposed by the US government against China's $200 billion, the Chinese government responded on May 13, Beijing time. The Office of the Tariff and Tax Commission of the State Council officially decided to impose tariffs on US $60 billion of goods exported to China. The maximum tariff is 25%. The tariff will be implemented on June 1, Beijing time.


From the $60 billion tax list listed by the Chinese government, non-net reporters saw a "display panel with liquid crystal devices (LCD) or light-emitting diodes (LED)", which will affect domestic panel manufacturers such as Beijing Oriental?

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From: imposing a 25% tariff on the US list of goods (partial interception)


At present, there are six powerful players in the global panel, Samsung and LG in Korea, Youda and Qunchang in Taiwan, Beijing Oriental and Huaxing Optoelectronics in Mainland China.


Beijing Oriental is the largest panel manufacturer in China. It has laid out four six-generation OLED flexible screens. In June 2016, Beijing Oriental built the first six-generation foldable flexible panel production line in Chengdu High-tech Zone; in October 2016, it built a six-generation OLED factory in Mianyang, producing 45,000 substrates per month, about 90 million smartphone OLED screens; in October 2017, it built six-generation flexible OLED in Chengdu B7. In March 2018, Beijing Oriental plans to build a six-generation OLED plant in Chongqing.


In addition to OLED, in December 2017, the first generation of 10.5 generation liquid crystal (TFT-LED) built by Beijing Oriental in Hefei was put into production, marking that Chinese display screen entered the world stage. In April 2018, the second 10.5-generation liquid crystal (TFT-LED) production line in Wuhan, Beijing Oriental, was officially launched and is expected to be completed by the end of 2019. Not only Beijing Oriental, but also Huaxing Optoelectronics and Huike have begun to plan or set up 10.5 generation production lines.

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MetInfo enterprise content manager system | MetInfo CMS

The construction of many LCD and LED factories in China means that the output of LCD and LED will continue to increase, the price will continue to decline, and the cost of end users will further decrease. This time, the Chinese government imposed tariffs on LCD screens with LCD and LED. Although there is no strong panel manufacturer in the United States, industry insiders have analyzed that the Chinese government has imposed tariffs on tablet products. If the Chinese terminal products continue to increase tariffs in the United States, it will be even more disadvantageous to the United States, because it means that American consumers have to pay higher fees.