With Corona 19, telecommuting and remote classes are taking place, and as the demand for TVs among the’Zipcocks’ increases, LCD panel prices are rising sharply. Photo pixar bay
As TV demand increases due to the pandemic (a pandemic) of the novel coronavirus infection (Corona 19), the price of liquid crystal display (LCD) panels is rising sharply.
According to global market research firm Omdia on the 5th, the average price of 55-inch LCD panels for ultra-high definition (UHD) TVs in January was $182 per sheet, up $7 from the previous month. It doubled from $102 in January last year.
The price of LCD panels of other sizes also jumped. The 65-inch rose from $162 last month to $231 last month, the 50-inch from $85 to $156, and the 43-inch from $69 to $117. In particular, the price of the HD-class 32-inch product has more than doubled from $32 to $68.
LCD price decline due to offensive Chinese companies
Large LCD prices have been declining sharply due to the offensive of Chinese companies. The LCD sales price, which was $143 in January 2019, dropped to $100 in nine months. At this time, China, with BOE and China Star ahead, increased its market share to 48%, overtaking Korea (26%), which was dominating the LCD market. As LCD sales accumulate losses due to falling prices, domestic display companies eventually decided to sell LCDs only until last year.
However, from the second half of last year, the situation reversed as demand outpaced supply. TV demand is exploding due to Corona 19, and sales prices have turned upward as key companies such as Samsung and LG cut production.
Corona, LCD price rebound due to semiconductor supply shortage
In addition, the supply shortage of semiconductors, which is a key component for LCD panels, overlapped. A display driver IC (DDI), a type of system semiconductor, plays a role in converting digital signals into analog light energy. Each LCD panel can contain as many as dozens. It is known that DDI suppliers are currently adjusting supply and demand for reasons such as business strategies. Omdia expects the average selling price of DDI in the first quarter of this year to rise by 20% compared to the same period last year.
Large display panel share graphic = Reporter Kim Joo-won [email protected]
Samsung·LG withdrawal of LCD and start of extended production
The industry predicts that prices will continue to rise until the first half of this year, including not only LCD but also OLED panels for TVs and smartphones. On a 55-inch LCD basis, Omdia predicts that the global price will gradually decline after exceeding the average of $186 in the first quarter, but will maintain the average of $165 next year.
As a result, domestic display companies abandoned their plans to withdraw the LCD business and started to expand production by fully operating the existing production line. Samsung Display decided to extend the business until the end of this year, and LG Display has not set a period, but it is currently producing LCD panels for TVs using facilities without inputting additional resources.
Reporter Park Hyung-soo [email protected]