Analysis of Market Development Trend of Upstream, Midstream and Downstream Industry Chains of TFT-LCD Industry in 2022

1. Competition analysis of TFT-LCD new display technology: New display is the core basic industry in the field of new generation information technology, and has fundamental, leading and strategic significance for the intelligent development of the global economy and society. According to the "Guidance Catalog of Key Products and Services for Strategic Emerging Industries (2016 Edition)" issued by the National Development and Reform Commission, high-performance amorphous silicon (a-Si)/low temperature polysilicon (LTPS)/oxide (Oxide) liquid crystal display (TFT-LCD) ) Panel products are key products of strategic emerging industries; according to the "Strategic Emerging Industries Classification (2018)" issued by the National Bureau of Statistics, display device manufacturing belongs to the electronic core industry of the new generation of information technology industry.

The new type of display has entered a period where TFT-LCD is the mainstream, and diversified display technologies such as AMOLED, Mini LED, Micro LED, quantum dots, and laser display compete with each other. As an important component of the current new generation of information technology, the strategic position of the new display industry is even more prominent. As South Korean companies shift their focus to the OLED industry and gradually withdraw from TFT-LCD, China’s LCD panel production capacity ranks first in the world. In the future, LCD production capacity will continue to transfer to China, and China’s display panel’s position in the TFT-LCD market will become more and more stable. TFT-LCD has certain advantages in terms of technology maturity, cost and yield, and is suitable for all product markets. It is the mainstream technology for TVs, desktop monitors, notebook computers, mobile phones, vehicle displays, industrial control displays, and smart interconnection.

In the future, in the context of continuous expansion of display application scope and diversification of display requirements, TFT-LCD and AMOLED, as the main technology types in the market, will cooperate with various display technologies such as Mini/MicroLED to meet the display requirements in different scenarios, and coexist and interact for a long time. compete. At this stage, TFT-LCD occupies a dominant position in the display field with its unique advantages of mature technology, stable quality, and high cost performance. In 2021, LCD production capacity will account for about 93%. AMOLED has the characteristics of light and thin, high contrast, low power consumption, and flexible display, and its penetration rate in high-end smartphones, wearable devices and other markets is growing rapidly.

As an improved technology based on TFT drive, metal oxide panel technology has higher electron mobility and light transmittance, better uniformity and stability than a-SiTFT-LCD, and can achieve high resolution, Features such as high refresh rate, narrow frame, and low power consumption have broad application prospects in high-end notebook computers, gaming display screens, tablets and other product fields, and are expected to become one of the mainstream high-end display solutions in the future.

By adopting more precise zone dimming technology, Mini LED can improve the display quality and contrast of the screen, highly restore the color and brightness of the real world, and has ultra-low power consumption. The application of Mini LED backlight technology will usher in the first year of large-scale commercial use in 2021, with a rapid growth rate, and will become the next growth point of the display industry. Especially driven by the efforts of various terminal brands, large-size displays are growing rapidly, and the small and medium-size markets are also qualified for mass production. If the cost can be further optimized, Mini LED backlight displays are expected to usher in rapid growth in actual shipments. Mini LED backlight technology is updated and upgraded on the existing technology, and has a good complementary relationship with traditional LCD display products.

As a highly anticipated next-generation display technology, Micro LED has better display performance and has good application prospects and development space. However, the technology is not yet mature. If it breaks through the bottlenecks of chip technology, drive technology, and mass transfer technology, it will be used in super large displays. , wearable display and other display technology markets have competitive advantages.

2. "14th Five-Year Plan" TFT-LCD new display development space: The era of the Internet of Things is rapidly opening, new scenarios and new applications are constantly emerging, consumption upgrades are accelerating, and a series of policies such as the national "14th Five-Year Plan" development plan have been introduced. It shows that the government actively supports the development of the entire display industry with TFT-LCD as the main fulcrum. The good market environment and policy environment provide a favorable guarantee for the rapid development of China's new display industry.

Entering the "14th Five-Year Plan", my country has always focused on the development of the electronic information industry, including the new display industry, and has successively introduced relevant industry development plans and policies to encourage and support the development of the industry. After more than ten years of unremitting efforts, my country has realized the leapfrog development of the new display industry from scratch, from small to large, and from weak to strong. With the continuous release of domestic production capacity and the withdrawal of some production capacity in South Korea, the industry concentration has further increased. my country is gradually occupying a leading position in the industry.

With the accelerated development of 5G, AIoT technology and the global digitalization process, the penetration rate of consumer electronics products continues to increase, new scenarios and new applications promote the diversified development of IT products, and the rapid growth of the new energy vehicle market drives the continuous growth of demand for display panels. In 2021, notebook computer panel shipments hit a record high. The demand in the first half of the year was driven by the epidemic, mainly consumer notebooks and education books. In the second half of the year, as Europe and the United States gradually unblocked and returned to normal work, the demand will be taken over by commercial machines. Support the demand for panels throughout the year. At the same time, under the trend of cars becoming more and more intelligent, on-board displays gradually show some characteristics of consumer electronics. The area and total amount of on-board displays such as central control large screens and dual screens are growing simultaneously. In 2021, the output value and output of the global new display industry will hit new highs, and the global output value of new display panels will be about 150 billion US dollars. In 2021, 292 million notebook computer panels will be shipped, a year-on-year increase of 28%; vehicle display panels will be 188 million pieces, a year-on-year increase of 26%; smartphone panel shipments will be 1.92 billion, a year-on-year increase of 8%.

The panel industry is a typical technology-intensive, capital-intensive and talent-intensive industry with high barriers to entry. Only companies with unique core technologies, rich customer groups, rapid demand response, stable supply, excellent quality, and long-term Only with stable operating capabilities can we match customer needs with innovative supply and thus be in an advantageous position in the competition.

3. The application prospects of the downstream market of the TFT-LCD new display industry: the development of the new display industry has shown a steady upward trend. With the rapid development of new technologies such as 5G and AIoT, markets in emerging application fields have emerged one after another, gradually becoming new drivers of industrial development. At the same time, the trend of large screens is becoming more and more prominent, which further promotes the growth of the industrial scale. In addition, with the mutual promotion of technological innovation and product innovation, the added value of display products continues to increase. The company focuses on small and medium-sized display panels, and the terminal application market is mainly based on notebook computers, vehicles, mobile phones, industrial control, tablet computers, smart interconnection and other products.

In terms of notebook computers and tablet computers, home office, online education, and remote meetings are normalized. In 2021, shipments of notebook computer and tablet computer panels will hit a record high. As the epidemic gradually improves, it is expected that global consumer demand for notebook computers and tablet computers will be rational in 2022 At the same time, consumers' demand for high-performance products such as high refresh rate, high resolution, ultra-low power consumption, and ultra-narrow bezel has increased, and the trend of large-size has accelerated, bringing new trends to the notebook computer panel market. development space. Experts predict that shipments of notebook computer panels will reach 300 million pieces in 2022, a year-on-year increase of about 4%, and tablet PC panel shipments will reach 259 million pieces in 2022, a year-on-year decrease of about 6%.

In terms of vehicle display, with the rapid rise of new energy vehicles and the accelerated development of vehicle intelligence, emerging application fields such as smart cockpit, multi-screen interaction, and driverless driving have emerged one after another. The application scenarios of vehicle display screens continue to increase. The loading rate has increased significantly, and the demand for vehicle-mounted display panels continues to increase. Multi-screen, large-screen, personalized, touch integration, and application interconnection have become the growth points of the vehicle-mounted display industry, and the vehicle-mounted display market will have greater development. It is also more conducive to the implementation of the company's differentiated and customized development strategies. In 2022, the automotive display market will grow by 10% year-on-year, reaching 206 million pieces. In addition, with the continuous upgrading of intelligent driving, the requirements for the brightness and image quality of the car display are getting higher and higher, such as high contrast, high dynamic HDR, wide color gamut and other requirements, so Mini LED is also gradually adopted to meet According to the needs of various customers, by 2025, the shipment of Mini LED backlight vehicle display products will reach about 4 million pieces.

In terms of smartphones, with technological upgrades and functional innovations, the demand for new products has increased, which has raised consumers' expectations for model replacement, and is expected to show a growing trend in the next few years. Driven by new technologies and forms such as high refresh rates, narrow bezels, low power consumption, light and thin, curved screens, and folding screens, the penetration rate of the AMOLED market will continue to increase. The market still occupies a very important position.

In terms of smart interconnection, with the continuous iterative update of big data, cloud computing, and Internet of Things technologies, the development space of smart interconnected devices has been greatly expanded, including the realization of Internet + medical health and other smart wearable devices. With the increasing demand for upgrades and health management, the market for smart connected devices is broad. With the development and popularization of new technologies such as 5G and AIoT, the scope of screen applications is becoming wider and wider, and industry competition will become more intense.

On the whole, TFT-LCD products have mature and stable technology and cost-effective advantages, strong customer demand, and will continue to occupy a dominant position in the display field. AMOLED panels have the characteristics of high contrast and flexible display. As people's demand for products with high contrast and low power consumption increases, the penetration rate of AMOLED panels in the smartphone and smart wearable markets is gradually increasing. As an emerging display technology, Mini/Micro LED has good development prospects and room for development. As the product is further recognized by the market, Mini LED backlight display is expected to usher in rapid growth in actual shipments in 2022.