[Observation by Ding Tech] Regarding the recent rumors about TCL Huaxing investing over 60 billion RMB to build an 8th generation OLED panel production line, TCL's parent company, TCL Technology, has clarified, stating that "the company currently has no plans to invest in an 8th generation OLED production line."
So, why did such rumors circulate? Ding Tech believes there are three main reasons:
Firstly, with Apple set to launch an OLED version of the iPad, it has sparked widespread industry interest in medium-sized OLED screens. Upstream panel manufacturers are intensifying their research and production of medium-sized OLED panels, which has become a focal point of industry attention. Some even argue that the future competition among panel manufacturers will mainly focus on medium-sized IT panels.
Source: Screenshot from Apple's official website
Secondly, Samsung and BOE have successively announced their investment plans in the field of medium-sized OLED panels. On March 27, BOE started constructing an 8.6th generation AMOLED production line in Chengdu, which, once completed, will become the world's most advanced technology and largest capacity production base for medium-sized OLED display devices. Additionally, in early March, Samsung announced the commencement of building a new 8.6th generation OLED production line. Korean media also predicts that LG Display will announce its 8.6th generation OLED production line plan in the second half of the year.
Thirdly, looking at TCL CSOT's product structure, medium-sized panels are their new focus for growth. In the large panel sector, TCL CSOT has advantageous production capacity and stable customer resources. However, due to significant price fluctuations in the large panel industry, focusing on developing more profitable medium-sized panels to achieve a balanced layout across all sizes is TCL CSOT's established strategy.
Given the many "reasons" supporting TCL CSOT's layout in medium-sized IT panel production lines, why haven't they planned for a new 8th generation OLED production line for medium-sized panels?
In fact, according to publicly available information, TCL Technology has provided an explanation: since 2014, TCL CSOT has been conducting research and exploration in the direction of printed OLED technology. With the collective efforts of industry partners in materials, equipment, and more, the readiness of printed production has improved in recent years. TCL Technology has also progressed with the construction of a 5.5th generation experimental line. However, the current demand for downstream medium-sized OLED products, the maturity of the printed production chain, and the company's technological progress have not yet met the conditions for large-scale production, prompting TCL Technology to proceed cautiously.
In the view of Ding Technology Network, it is necessary for Chinese companies to establish medium-sized 8th generation or higher OLED panel production lines from the perspective of global semiconductor display industry competition. For example, BOE strategically laying out an 8.6th generation OLED production line will provide sufficient technological capabilities and production strength in the future to compete with Korean giants and replicate the success stories in the LCD and small OLED panel sectors. Of course, different companies have their own resources and capabilities, leading to varying future judgments and decisions, which is understandable.
Currently, Chinese companies have taken the lead in the LCD panel sector, with Korean giants gradually withdrawing from this market competition. In the small OLED panel sector for mobile phones, Chinese companies such as BOE, TCL CSOT, and Visionox have risen rapidly and can now generally compete with Korean giants. In the large OLED panel sector, although Chinese panel companies do not have mass production lines, the market for large OLED panels is relatively niche, lagging behind in development compared to Mini LED. Additionally, technologies like BOE's ADS Pro and TCL CSOT's QD-Mini LED can rival OLED in technical capabilities, creating a substitution effect. Therefore, once Chinese companies effectively secure a position in the medium-sized OLED panel sector, China will have almost no shortcomings in the development of new display technologies. In the era of semiconductor displays and even the Internet of Things, China will possess industrial leadership advantages. (Ding Technology Network original, please indicate the source when reprinting: Ding Technology Network)
