After Sharp's acquisition, JDI was the only large panel company left, but its lack of funds to acquire JOLED, an OLED company, due to three years of losses and a switch from big customer Apple to Samsung's OLED, will further widen the gap with Chinese and South Korean panel companies in the future.
Japan used to be the world's largest panel producer in the early 1990s, but by the end of the 1990s Samsung had surpassed The Japanese panel companies to become the world's largest panel producer. Since 2000, South Korean companies Samsung and LG have been more and more firmly ranked in the top two global panel suppliers, and Japanese panel production gradually fell behind.
After 2000, the rise of panel manufacturers in Taiwan, and the rise of Panel five tigers such as Chi Mei and Au, promoted Taiwan to become the only panel producer next to South Korea. Now, after several times of integration, Qunchuang and Au have been formed in Taiwan.
In mainland China in 2003 through the acquisition of South Korea's modern boe LCD panel production line stepped in panel production market, in 2009 Beijing Oriental construction line 8 generations, in the same year, shenzhen huaxing photoelectric panel enterprises set up 8.5 generation line, to open the mainland panel production began to enter the stage of rapid growth, the two companies is being built in the current implementation catch up 10.5/11 of the world's most advanced generation line target. In 2016, the shipments of panel factories in the Chinese mainland accounted for 30% of the world's total, ranking second only to South Korea, and surpassing Taiwan's market share of 25.5% for the first time.
Competition in mainland China and Taiwan, China, South Korea's samsung and LG panel enterprises begin to shrink the traditional TFT - LCD panel production, sale of TFT LCD panel production line or switch to more lucrative OLED panel, samsung has become the world's largest production enterprises, small and medium size OLED panel occupies the market by more than ninety percent market share, while the LG TV market advantage with the large size of OLED panel.
Japan's JDI and Sharp have switched to making smaller TFT-LCD panels, having been no. 2 in the market a few years ago, but their profits have been poor because of intense competition. Last year Hon Hai of Taiwan bought Sharp, which had IGZO and OLED technology in its hands, making IT Japan's last big panel maker.
JDI had been able to stay in business with apple as a big customer, but apple's adoption of Samsung's OLED panels in the new iPhone8 this year is the biggest blow to JDI, as OLED panels become more widely available. After Apple starts to introduce OLED panels, it is inevitable that OLED panels will become popular in the smartphone market.
In addition to Sharp, a small Japanese panel company, JOLED, has OLED panel technology. JOLED was established by a joint venture, such as Sony, Panasonic, Japanese officials and industry innovation mechanism (INCJ) given the strong support, the current INCJ hold JOLED75% equity, JDI, Sony, Panasonic, hold 15%, 5%, 5%, respectively, in the current rapid development of OLED panel case JDI this hope will be increased to 51% of the equity of JOLED holdings, and rapid expansion OLED panel, but now the plan from the end of the deferred until next year.
However, with JDI itself losing money for three consecutive years, INCJ's lack of support for the panel industry, and one of the main reasons sharp was acquired by Hon Hai, INCJ's lack of support remains a big question about whether it will be able to complete its plan to increase its stake in JOLED next year.
Hon hai, by contrast, in the acquisition of sharp after spending heavily on hope quickly will IGZO technology and OLED panel to realize large-scale production, the investment of more than 60 billion yuan this year in guangzhou after 10.5 generation line panel factory construction, it is in discussions in the United States recently invest $7.3 billion to build 10.5 generation of line, it shows that hon hai's ambition.
Panel production enterprise in mainland China, huaxing boe photoelectric also invested heavily in the OLED panel production, in addition to and glow electricity, soft technology, the OLED panel production, small and medium enterprises in continuous expansion, including mainland China top 3 soft technology, more is the world's top five mobile phone brands, huawei, OPPO, investment in vivo, next year is expected to China OLED panel will significantly expand production scale, such as TFT - LCD panel to become the world's three main origin of OLED panel production.
JDI's decline in the panel market seems inevitable. Companies in China, Taiwan and South Korea are the main players in the panel competition, with the most striking rise of China, which is also related to China's strategy of actively promoting the shift from Chinese manufacturing to Chinese creation.
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