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China LCD industry has developed rapidly in recent years. Panel companies represented by BOE, Huaxing Optoelectronics , Tianma, etc. have risen rapidly, and the industrial center has shown a significant shift to China. Under fierce market competition, Japanese and Korean panel production capacity has gradually withdrawn. In 2013, mainland China's TFT-LCD panel revenue accounted for about 10% of the world. Currently, the revenue of mainland China's TFT-LCD panel manufacturers accounted for more than 40% of the world's revenue. At the same time, the LCD industry showed marginal improvement, panel prices bottomed out and rebounded, and the industry's prosperity was expected to rise. On this basis, domestic materials are expected to benefit fully. In terms of the market size of
, according to our calculations, the market sizes of mixed crystals, polarizers, , backlight modules, , glass substrates, and color filters in mainland China in 2017 were 33/112/274/143/16.9 billion yuan, totaling 73.2 billion yuan; by 2020, the scale of the above market is expected to reach 46/156/382/199/23.5 billion yuan, totaling 101.7 billion yuan, with a compound growth rate of 11.6%. The target materials, , mask, photoresist, and other materials used in the panel manufacturing process also have a market scale of 10 billion.
From the perspective of elasticity, the domestic production rate of polarizers, glass substrates, PVA films, and TAC films is currently below 20%. The products are still in the introduction period and need to wait for technological breakthroughs, customer verification or product increase process. The domestic production rate has not yet entered the fast lane; the domestic production rate of color filters and mixed crystal materials is between 20% and 50%. Mainland Chinese companies usually have their own technology and independent research and development capabilities, and their products have been verified by the market. Leading enterprises have the ability to expand production, and the domestic production rate is expected to increase rapidly; the domestic production rate of backlight modules, reflective films, , diffusion films, and brightening films have reached more than 50%, and there is a certain pressure to further increase.
Therefore: (1) TAC membrane and PVA membrane have the lowest domestic production rate, but due to patented technology and other reasons, mainland Chinese manufacturers have not yet entered the mainstream market and still need to wait for industrial development and accumulation. (2) There is a lot of room for improvement in the domestic production rate of polarizers and glass substrates, and the market size is in the order of 10 billion yuan, and there is room for growth. (3) The domestic production rate of mixed crystal materials and color filters is expected to increase rapidly, and the domestic production process will be the most beneficial. (4) The domestic production rate of backlight modules, brightening films, diffusion films, and reflective films is more than 50%. Among them, the market size of the backlight modules is the largest, and the domestic self-supply is basically achieved. There is a certain pressure to further increase the domestic production rate.
Investment Strategy
LCD The industrial center is rapidly shifting to mainland China, and the industry's prosperity is expected to rise. Under the general trend of domestic production, it is recommended to plan leading companies with mass production capabilities and deep technical accumulation, and are expected to quickly achieve market share replacement.
capacity transfer + the prosperity is upward, LCD materials usher in opportunities
LCD panel production capacity is accelerating the transfer to mainland China, which is beneficial to the localization of materials
Currently, the LCD industry is mainly concentrated in Japan, South Korea, Taiwan and mainland China. With the strong financial support of the government and banks, the tablet display industry in mainland China has developed rapidly in recent years. It is actively investing in the purchase of production equipment to build new factories. Panel companies represented by BOE, Huaxing Optoelectronics, Tianma, etc. have risen rapidly, and the industrial center has shown a significant transfer to China. At the same time, under fierce market competition, the Japanese and Korean panel production capacity has gradually withdrawn. In 2013, mainland China's TFT-LCD panel revenue accounted for about 10% of the world. Currently, the revenue of mainland China's mainstream TFT-LCD panel manufacturers accounted for more than 40% of the world's revenue.
On the other hand, the large-size LCD line in mainland my country has been gradually put into production. At present, there are 17 large-size LCD panel production lines of 8.5 generations and above in mainland my country, of which 3 will be put into production in 2020 and 2021. With the gradual implementation and climbing of production capacity in mainland my country, it is expected to quickly seize the market share of Japanese and Korean manufacturers.
LCD shows marginal improvement, and the industry's prosperity is expected to continue to rise
2017-2019, the global TFT LCD panel revenue was US$762, 697, and 67.4 billion, respectively, with year-on-year changes of +12.06%, -8.53%, and -3.30%. From January to April 2020, the global TFT LCD panel revenue was US$47, 43, 57, and 5.4 billion, respectively, showing a month-on-month improvement trend.
From the perspective of price, the prices of 19.5-27-inch LCD display panels have all increased month-on-month, rising from US$34.0, 41.1, 50.1, and 71.7 in January 2020 to US$34.1, 41.9, 51.1, and 72.9 in May 2020 respectively. The price of large-size LCD TV panels also ended in 2020, which continued to decline.
In the short term (from June to Q3 this year), SDC and LGD supply contracted, overseas demand recovered, and the industry's prosperity increased, and strong expectations were expected. From the price point of view, large-size panels are expected to remain the same in June as in May, and there is an expectation of an increase in July. From the perspective of demand, the demand for panel factories increased significantly in June due to overseas impacts, and the increase in demand in Q3 was even more obvious. In the medium term (next year's dimension), Samsung and LG will withdraw from the panel and confirm that overall demand is expected to continue to recover, and the delayed Olympics will also bring some incremental growth. The economic level may continue to rise. As for materials, in addition to the downstream short- and medium-term development, with the continuous improvement of the production capacity of BOE and Huaxing Optoelectronics and the continuous transfer of the industrial chain to China, there will also be a clearer long-term substitution logic.
In 2017, the average size of LCD TV panels worldwide was 44.3 inches, and it is expected that by 2020, the average size of LCD TV panels worldwide will rise to 48.5 inches. Larger panel size means more material usage. At present, among all generations of LCD panels, the 8th generation line accounts for as high as 65%, while among the different generation line production capacity in other regions, the 10th generation and above generation line production capacity accounts for 5%, and the 8th generation line production capacity accounts for 46%. In the future, high-generation wire materials will become the mainstream of LCD panels, which will be beneficial to the material market. Overall, benefiting from the improvement of the industry's supply and demand pattern, the prosperity of the LCD industry is expected to continue to rise.
LCD: High gross profit on the material side, the rise of domestic products leverages the industrial map
Demand changes have made LCD display technology, and the industrial chain is maturing
Display technology, as an important part of the information industry, plays an important role in the development of information technology. Display equipment carries most of people's expectations for entertainment life, becomes a part of life, and plays an indispensable role in various scenarios such as family, work, and travel. With the migration of user needs, display technology is also constantly improving and upgrading. Compared with traditional CRTs, flat panel FPD has the advantages of energy-saving and environmental protection, low radiation, light weight, thin thickness and small size, and is the mainstream direction of the development of display technology. LCDs have a series of advantages such as low operating voltage, low power consumption, high resolution, good interference resistance and wide application range. The implementation of size jump and light design have made CRT history.
is generally divided into TN-LCD, STN-LCD and TFT-LCD according to the different types of technologies used in LCD production. Among them, TN-LCD and ordinary STN-LCD can only achieve monochrome display, and STN-LCD upgraded products CSTN-LCD and TFT-LCD can only display color. With the rapid popularization of color display products, TFT-LCD with excellent display performance is the mainstream product of liquid crystal display and occupies a dominant position in the LCD market. Although new display technologies such as quantum dots and OLEDs have appeared in recent years, it is expected that the status of LCD will not be replaced in the short term.
In the LCD industry chain, the upstream is a variety of raw material manufacturers, the midstream is a variety of LCD panel manufacturers, and the downstream is a variety of complete machine product manufacturers. LCD, as a capital-intensive, technology-intensive and labor-intensive industry, has natural high barriers, and developed countries have long occupied the high end of the industrial chain. After decades of difficult development, a number of mid- and downstream leading enterprises such as BOE and Huawei have emerged in mainland my country, bringing the possibility of maturing China's LCD industry and achieving group breakthroughs. The domestic industrial platform has opened up living space for upstream raw material companies, giving my country's independent materials research and development system the opportunity to enter an upward cycle. Although upstream materials are still dominated by European, American, Japanese and Korean companies, there is still a certain gap in the quality of mainland my country's products and foreign materials, with a small market share and concentrated in the mid- and low-end fields, the market structure is quietly changing with the strong investment in the entire industrial chain, national policy support, and domestic enterprises insist on R&D and innovation.
The gross profit margin of the industrial chain shows a smile curve, and the upstream material end has the strongest profitability
LCD is divided into liquid crystal, polarizer, color filter, glass substrate, backlight module, driver IC, etc. in terms of structure. The backlight module provides a light source; the upper and lower polarizers allow light to pass in one direction; the liquid crystal changes the polarization state of the light; the upper and lower glass substrates protect and intercalate liquid crystals, and the lower glass substrate is equipped with a thin film transistor TFT, which acts as a switch, transmits voltage signals to the liquid crystal, which determines the steering angle of the liquid crystal, and the upper glass is pasted with a color filter, which adjusts the color and brightness through the mixing of RGB three colors.
LCD The gross profit margin level of the upstream, midstream and downstream industries in the industrial chain constitutes a typical "smile curve". On the left side of the curve are the upstream related suppliers such as glass substrates, optical film materials, chemicals and backlight modules, in the middle are LCD panels and module manufacturers, and on the right are the whole machine assembly, whole machine brand and channel dealers. Glass substrates have the highest gross profit level in the LCD industry chain, reaching 50%-60%; optical film gross profit is about 40%; chemical gross profit is 35%-40%; backlight module gross profit is 10%-15%.
The cost structures of different LCD panels vary slightly. Overall, the backlight module accounts for the highest proportion, followed by color filters. Taking 42-inch CCFL TV as an example, the backlight module composition cost accounts for 29%, color filter accounts for 22%, polarizers and glass substrates both account for 12%, and liquid crystal materials account for 6%.
Mixed crystal: High-end materials rely on imports, and the rise of domestic products is expected to break the monopoly of Germany and Japan
Mixed crystal materials are built with high barriers, and domestic enterprises are moving towards high-end
Liquid crystal materials production from raw materials to liquid crystal intermediates to liquid crystal monomers, and finally to form mixed liquid crystals. Different display methods have great differences in the performance requirements of liquid crystal materials. Even the same display methods vary according to the purpose, process conditions, etc., and the requirements for liquid crystal materials are also different. However, any liquid crystal monomer has only excellent performance in one or several aspects and cannot be used directly for display. In practical applications, by selecting a variety of liquid crystal monomers with some excellent properties and adding a small amount of additives, it is prepared into a mixed liquid crystal with the best comprehensive performance, meeting the performance requirements of the liquid crystal material for display. All the liquid crystals used in the liquid crystal display are mixed liquid crystals. Depending on the different uses of liquid crystal display, there are many types of mixed liquid crystals, and high-end liquid crystal displays use TFT type mixed liquid crystals.
In 2017, the global demand for mixed crystals was 7.62 million tons. It is estimated that by 2020, the global demand for mixed crystals will reach 8.54 million tons, with an annual compound growth rate of 3.9%. In 2017, the demand for mixed crystals in mainland China was 2.99 million tons, and it is expected that by 2020, the annual compound growth rate is 11.6%, far higher than the global level. Calculated at 15 million yuan per ton of mixed crystal materials, it is estimated that the global mixed crystal materials market size will reach 12.81 billion yuan in 2020, and the market size of mixed crystal materials in mainland my country will reach 6.24 billion yuan. The market for mixed crystals of
is mainly monopolized by Merck , JNC, and DIC. Mainland Chinese LCD companies started late, had weak technical R&D capabilities, were not mature enough, and the display effect was not stable enough. Most of the high-end LCD materials needed by LCD panel manufacturers rely on imports. Mainland Chinese manufacturers include Hecheng Display, Chengzhi Yonghua, and 800 million space-time. As domestic mixed crystal materials are gradually verified and applied on LCD production lines, this proportion is expected to increase rapidly in the future.
Because the key technologies of liquid crystal materials are protected by intellectual property rights, large foreign companies with patents have higher production costs, and customization models have become a unique business model in the industry. In addition to producing the liquid crystal intermediates and monomers required by international manufacturers to produce TFT-type mixed liquid crystals, the purchase part is mainly purchased from mainland China.
LCD monomers and intermediates adopt a custom model, and the
custom model is a commonly used business model in the LCD industry. The main enterprises that produce single crystals and intermediates are Wanrun Co., Ltd., Xi'an Ruilian, Yongtai Technology, Yantai Derun , etc.(1) The liquid crystal monomer products produced by Wanrun mainly include olefins, biphenyls, cyclohexanebenzene, esters and other fluorine-containing liquid crystal materials. The liquid crystal intermediates mainly include phenols, cyclohexanones, benzoic acids, cyclohexane acids, halogenated aromatic hydrocarbons, etc. The main customers are Merck, DIC, JNC, etc., of which Merck's annual procurement volume accounts for about 1/3 of its total procurement volume. (2) Ruilian New Materials liquid crystal monomer products mainly include olefins, biphenyls, cyclohexylbenzene, heterocyclics, cyclohexanebenzene liquid crystal materials, etc. (3) Yongtai Technology has produced four series of more than 80 fluorobenzene compounds. In terms of liquid crystal materials, the company mainly produces liquid crystal synthesis intermediate-fluorobenzene intermediate. (4) Yantai Derun is mainly engaged in the sales of liquid crystal intermediates and monomers, and its main customers are still in mainland China. It supplies famous LCD manufacturers such as Shijiazhuang, Xi'an, and Beijing all year round, and some of its products are exported to Japan CHISS, Japanese DIC, German Merck and other companies, with good reputation and popularity.
polarizer: Mainland China started late, and only two large-scale production companies have monopolized the base films of
, and the import substitution space for polarizers is huge.
polarizer accounts for about 10% of the cost of LCD panels. There are two polarizers in the liquid crystal display module respectively attached to both sides of the glass substrate. The lower polarizer is used to convert the light beam generated by the backlight source into polarized light, and the upper polarizer is used to analyze the polarized light and dark contrast to produce a display screen. The imaging of the LCD display module must rely on polarized light. Without any polarizer, the LCD display module cannot display images.
polarizer is mainly made of PVA film, TAC film, PET protective film, pressure-sensitive adhesive and release film. In the cost composition of polarizers, TAC film ranks first, accounting for 50%, PVA film accounts for 12%, the remaining pressure-sensitive adhesive accounts for 8%, and protective films and release films account for 15%. After dyeing, the PVA film adsorbs iodine molecules with a didirectional absorption function. The iodine molecules are arranged in an orderly manner on the PVA film through stretching to form a polarizing film with uniform didirectional absorption performance, and its transmission axis is perpendicular to the direction of stretching. The mainstream process of polarizer production is process iodine production technology and wet stretching process. The production process is divided into three stages: front, middle and last stages, and the front stage is the core link. The pre-processing includes pretreatment of the TAC film and extension and recombination of the PVA film. The pretreatment process of TAC membrane is to treat the TAC membrane with alkaline liquid, clean the residual alkali liquid through a water washing tank, dry and wind it up, and reduce the contact angle of the TAC membrane to facilitate bonding with the PVA membrane. The extension and composite process of PVA film is to immerse the PVA film after being expanded by pure water into the dyeing tank, adsorb the iodine molecules in the diagonal absorption, and then stretch and oriented the iodine molecules through the extension tank. After drying, the PVA film and the two pretreated TAC films are combined to obtain a polarizing film. The process is the process of coating other film materials such as pressure-sensitive adhesives and composite release films. The cured polarizer will be cut, edged, cleaned, inspected and packaged according to the required size.
Among the film layers required for the production of polarizers, TAC film and PVA film are the most important film layers, and their technology and products are mainly controlled by Japanese companies. At present, the TAC membrane has been partially domestically produced by China Lekai. According to the current mainstream production process of polarizers, it is expected that PVA and TAC will be difficult to replace by other materials for the time being. Since Japanese companies monopolize their technology and products, polarizer manufacturers mainly purchase them from Japanese companies. In terms of pressure-sensitive adhesives, the pressure-sensitive adhesives for black and white polarizers have basically been domestically produced. High-end pressure-sensitive adhesives mainly rely on imports. Japan's SOKEN and TOYOINK companies have production factories in Nanjing, China and Shanghai, China respectively.
Under normal circumstances, the polarizer demand for an 8.5 generation TFT-LCD production line is about 14 million square meters per year. With the completion and production of various high-generation LCD panel lines in mainland China, China is expected to become the market with the largest demand for new polarizers in the world.
Since 2007, overseas LCD panel companies have begun to vertically integrate polarizer companies, and panel companies actively control upstream polarizer manufacturers. As a result, overseas LCD panel companies have guaranteed polarizer supply and overall competitiveness have been improved. Therefore, mainland Chinese LCD panel manufacturers have a strong demand for achieving domestic polarizer supporting facilities. As of the end of 2016, the production scale of polarizers in mainland China was relatively small. Except for factories set up in China with foreign capital, there were only 3 TFT-LCD production lines owned by mainland Chinese enterprises, and the domestic production rate of the polarizer market was low. Therefore, Chinese polarizer manufacturers with first-mover advantages such as technology, market, and talents will benefit first in this round of industrial development.
polarizer is the upstream raw material of LCD panels. With the continuous construction and production of LCD panel production capacity, it has driven the demand for polarizers. In 2017, the global demand for polarizers was 460 million square meters, and the production capacity was 714 million square meters. The supply of polarizers in mainland China is far from meeting its LCD panel production needs, and a large number of imported polarizers are needed to meet the needs of panel manufacturers. In 2017, my country's mainland polarizer demand was 159 million square meters, and its production capacity was 107 million square meters, which was a huge supply gap.
Overseas polarizer companies have also built polarizer production bases in mainland China in order to cooperate with local production. For example, LG Chemical established a subsidiary of Lejin Chemical (Nanjing) Information Materials Co., Ltd. in China, built two production lines in Nanjing, and had a 2300mm wide-frame polarizer production line under construction; in January 2014, China Taiwan Chimei Materials announced that it would build a polarizer production line in Kunshan. Mainland Chinese panel manufacturers will likely rely more on supply of polarizer manufacturers in mainland China, thereby reducing the import of polarizers. The mainland Chinese market will be a must-fight place for polarizer manufacturers, and mainland polarizer manufacturers are ushering in important industry opportunities.
Due to the high technical threshold for polarizers, the market is mainly monopolized by several major manufacturers such as LG Chemistry, Sumitomo Chemistry, and Hitou Tektronix . However, with the continuous accumulation of technology in emerging markets, the market concentration of Japanese and Korean manufacturers has decreased. Mainland Chinese manufacturers are gradually making efforts, and their market share is gradually increasing. In 2015, South Korea's polarizer production capacity ranked first in the world, accounting for about 40%. The main companies include Sumitomo Chemical's Korean subsidiary Toyo Precision Chemical, Koreno, Nitto Denko, and Samsung SDI; Japan ranked second, accounting for about 32%, and the main companies include Nitto Denko, Sumitomo Chemical, Sanriko, and Baolai; Taiwan's production capacity ranked third, accounting for about 20%, and the main companies include Chime Materials and BenQ Materials, and Sumitomo Chemical's Taiwan subsidiary Soukai Electronic Materials Technology Co., Ltd.; Mainland China's production capacity accounted for about 9%, and the main companies include LG Chem (Nanjing) Information Materials Co., Ltd., Shengbo Optoelectronics, Sanlispo, etc.
The development of polarizers in mainland China started with Shengbo Optoelectronics introducing a polarizer production line from the United States in 1997. Later, in 2000 and 2001, mainland Chinese companies successively produced polarizers for TN/STN-LCDs. From 2007 to 2010, the production of polarizers for TN/STN-LCDs was developed rapidly in mainland China and its production capacity increased rapidly. In 2010, mainland Chinese companies began to produce polarizers for small and medium-sized TFT-LCDs. In 2011, Sanlispot and Shengbo Optoelectronics successively put into production of 1490mm wide-frame production lines to produce polarizers for large-sized TFT-LCDs, filling the gap in the large-sized TFT-LCD polarizer industry in mainland China. In 2016, Dongxu Optoelectronics Technology Co., Ltd. announced that it had established a joint venture in Wuxi with Sumitomo Chemical Co., Ltd., Dongyu Fine Chemical Co., Ltd. and Tuomi International Co., Ltd. to engage in polarizer procurement, production and processing business. In the field of polarizers for TFT-LCD, the main ones that have full-process scale production capacity among mainland Chinese manufacturers are Shengbo Optoelectronics and Sanlisong.After years of technical accumulation,
Sanli Spectrum has independently developed and mastered the core technologies of polarizer production such as PVA extension technology, PVA composite technology, pressure sensitive adhesive development technology, warpage control technology, automatic appearance inspection technology, equipment design and integration technology, breaking the long-term monopoly of polarizers by Japanese, Korean and Taiwanese enterprises. The product types include TN polarizers, STN polarizers, TFT polarizers, OLED polarizers, 3D glasses polarizers, etc. The product has the thinnest effective thickness to reach 90μm, and can provide products of different thicknesses such as 120μm, 130μm, 150μm, 210μm.
PVA membrane: monopoly of Japanese companies, domestic products can only meet low-end demand
In terms of capacity supply, PVA membrane is monopoly of Japanese companies Cola Li and Synthetic Chemical. Japan's Cola Li has a PVA film production capacity of 200 million square meters, accounting for more than 70% of the world, occupying the main market share. On February 19, 2018, the company issued an announcement stating that it will increase the production of PVA films for optical films, and is expected to invest more than 10 billion yen (equivalent to approximately RMB 592 million) for the production line in Kurashiki City, Okayama Prefecture, and is expected to be put into production by the end of 2019. By then, the annual production capacity of Japanese Colali PVA film will reach 264 million square meters.
Mainland China PVA membrane suppliers include Changchun Chemical (Taiwan Enterprise), Wanwei Hi-Tech , etc. Changchun Chemical invested and built the second PVA membrane wide production line in 2013, and tried the production and delivery of samples in 2015, and signed a strategic cooperation intention with Sanlipu. The black and white PVA film developed by Wanwei Hi-Tech has basically met the domestic production. In October 2018, it plans to invest in the construction of a new PVA optical film project of 7 million square meters per year.
TAC film: In the germination stage of domestic production, the technology still requires foreign authorization
In the polarizer, the polarization layer made of PVA film is prone to absorb water, fade and loses its polarization performance. A TAC (triacetate triacetate) film with good optical uniformity and transparency is used on both sides of the PVA film to isolate moisture and air and protect the polarization layer. In addition, in order to better realize the real reproduction of the picture, prevent and avoid interference from internal or external matte light, and improve the resolution of the display, targeted surface treatment is often performed on the optical plate TAC film.
optical plate TAC film refers to a TAC base film that has not undergone any surface treatment. The TAC film used in the field of polarizers involves four specifications (thickness): 40μm, 50μm, 57μm, and 80μm. Among them, 80μm is the mainstream product. The surface-treated TAC membranes include anti-glare (AG), anti-glare + low reflection (AG + LR), clear hardening + low reflection (CHC + LR), clear hardening (CHC), and anti-reflection (AR).
In 2017, the global TAC base film demand was 1228 million square meters, with a market size of US$3.5 billion; the TAC film demand in mainland my country was 317 million square meters, with a market size of US$980 million.
TAC base film is mainly monopolized by Japan, South Korea, and Taiwan, among which Japanese Fujifilm occupies the main market share of TAC base film. The annual production capacity of Fuji Film in Japan is 820 million square meters, accounting for 55.2%; Konica Minolta has an annual production capacity of 300 million square meters, accounting for 20.2%; Japan's Ruiong has an annual production capacity of 75 million square meters, accounting for 5.1%; South Korea's Hyosung has an annual production capacity of 110 million square meters, accounting for 7.4%; Taiwan's Xinguang synthetic fiber annual production capacity of 80 million square meters, accounting for 5.4%. Mainland Chinese suppliers include Dahui Optoelectronics, Kangdexin, Huizhixing, etc. In December 2015, Xinlun Technology signed a cooperation agreement with Toyama, Japan. Toyama, Japan licenses product technologies including polarizer TAC functional films, protective films and touch screen related functional films to Xinlun Technology. After the completion of the third phase of the Changzhou project, it is expected to produce TAC functional optical films annually exceed 90 million square meters. In November 2015, Zhejiang Dongfluoroplastics Technology Co., Ltd. introduced an annual TAC optical film project with an annual output of 100 million square meters, with a total investment of approximately 1.01 billion yuan. In 2005, Lekai invested 140 million yuan to build a TAC film production line. The technical team came from Kodak, Japan. In 2011, it invested again 350 million yuan to build a TAC film production line.
and the market for functional TAC membrane is mainly dominated by Japan and South Korea.In 2016, the sales volume of the printing function TAC film of Japan reached 100.3 million square meters, accounting for 44.9% of the market share; LG Chemical sold 42.7 million square meters, accounting for 19.1% of the market share; letterpress printing sales were 37.5 million square meters, accounting for 16.8% of the market share; Nitto Dento sold 23.5 million square meters, accounting for 10.5% of the market share; Japanese paper sales were 8 million square meters, accounting for 3.6% of the market share.
backlight module: sufficient production capacity, the raw material link is crucial
panel manufacturers integrate upstream, and the optical film is to be broken through
backlight modules are mainly divided into direct type and side-entry type according to the backlight type. The direct-down type does not require light guide plate . The backlight is evenly distributed on the back cover of the body, the screen brightness is more uniform, the contrast is better, and the light leakage is small, but the backlight lamp and the panel are at a certain distance, so the body of the direct-down backlight TV is thicker. The side-in backlight is arranged on both sides or at the bottom, and the light guide plate is used to spread the light to the screen, which can make the screen thinner and reduce the thickness of the TV.
backlight module includes a brightening film, a diffusion film, a reflective film, a light guide plate, a light source, etc. In the backlight mold composition structure, brightening film accounts for 29%, diffusion film accounts for 6%, and reflective film accounts for 2%. However, for a long period of time in the development of optical films, the optical film technology and market have been basically monopolized by a few manufacturers such as Keiwa, Tsujiden, Kimoto, Toray, Korean companies SKC, LGE, American companies 3M, and Taiwanese company Youhui. Backlight module companies usually customize production according to the needs of LCD display module companies.
backlight module companies generally use raw materials such as film materials, FPC, LED and other components to purchase them, and some components such as light guide plates are assembled and processed independently. For consideration of factors such as quality control and cost control, backlight display module manufacturers with strong strength tend to independently support integrated industrial chains to facilitate quality control of all production links of die-cutting, hardware, and light guide plate production and achieve large-scale production. When choosing a backlight module manufacturer, LCD display module manufacturers need to go through a strict, complex and long-term certification process. Terminal application manufacturers will also authenticate backlight module manufacturers. Certified as qualified backlight module suppliers usually form a stable supply chain relationship. Currently, there are dozens of backlight module manufacturers in mainland China, many of which have been vertically integrated by downstream panel manufacturers.
According to DisplaySearch data, it is estimated that the global LCD module market demand will reach 3.438 billion pieces by 2020, an increase of 828 million pieces from 2011, with a growth rate of 31.72%. The optical film industry in mainland China is still in its infancy, with weak R&D and relatively dispersed R&D capabilities. Basic research and optical design for optical functional films have not yet been paid close attention. Most of the key raw materials required by the optical film industry, especially raw materials such as optical-grade slices and optical film special additives, cannot be produced in mainland China at present, and the technical threshold is relatively high. Therefore, it mainly relies on imports from Japan, South Korea and other places. In terms of
production technology, most of the existing optical film base films and optical functional film manufacturers in mainland China have not been systematically researched and developed due to the lack of key production process technology and experience. The precision coating equipment and technology that the optical functional films rely on are not systematically researched and developed. The production of high-end optical films still requires imported equipment. In addition, the difference in raw materials makes the products only meet the mid- and low-end applications, so mainland Chinese companies are temporarily unable to enter the large supply chain and cannot be self-sufficiency.
Brightening film: Independent technology has gradually made breakthroughs, industrial development has welcomed a good opportunity
Brightening film is also called a prism film according to its microscopic prism structure. The implementation process of correcting the direction of light to achieve the luminous effect can also be called a luminous film. The brightening film is a transparent optical film composed of three layers of structure. The lowermost layer of the light-inlet surface needs to be provided with a certain haze through back coating, the intermediate layer is a transparent PET substrate layer, and the uppermost layer of the light-out surface is a micro-prism structure. Depending on the refractive index, the brightening film can be divided into three levels: high-end (>1.57), mid-end (1.54~1.57), and low-end (<1.54).the>
brightening film is that when the light source passes through the light surface and the transparent PET substrate layer, the light intensity distribution will be controlled through refraction, total reflection, light accumulation, etc. when the prism layer passes through its fine prism structure on the surface, and the light scattered by the light source is concentrated to the front, and the unused light outside the viewing angle is recycled through the reflection of the light, reducing the loss of light, and at the same time, improving the overall brightness and uniformity, which can increase the brightness and control the viewing angle of the LCD panel display.
brightening film production process includes optical design, precision mold, chemical formula and coating. The most critical technique is the technology of engraving prismatic patterns on the roller. In lens extrusion production, lens extrusion roller processing technology directly affects the prismatic lens forming quality of the product. At present, the most common practice in the world is to coat the processed steel rollers with a layer of low-hardness metal such as copper, and use diamond tools to process the fine prismatic structural surface. The surface of this layer cannot reach the extrusion production state. A harder layer of nickel or chromium must be coated on the processed surface of the fine structure. The most advanced process is to coat a layer of nickel-phosphorus alloy to meet the process requirements of diamond tool engraving prism lenses. At the same time, since the lens requires very high surface accuracy and surface finish, this roller making technology is currently a global problem.
2017 The world brightening film market was approximately 280 million square meters. The world's major brightening film manufacturers include: 3M in the United States, in Japan, Mitsubishi rayon, LGE in South Korea, MNtech, Xinhe, SKC Haas, Samsung Cheil in Taiwan, Youhui Optoelectronics, Jiawei Optoelectronics, Yinghui Technology in Taiwan, etc.
Currently, the main brightening film manufacturers in mainland China include Dongxucheng, Kangdexin, Jizhi Technology, Warwick New Materials, Chengdu Fist, Zhengde Optoelectronics, Xintianshi Optoelectronics, Vic Optoelectronics, Suzhou Stick, Kaixinsen, Shanyoudishan, Changyang Technology, Jinhui Optoelectronics, etc. According to CNCET statistics, the production capacity of brightening films in mainland China reached 110 million square meters per year in 2017, with an output of about 75 million square meters. In the past few years, the annual average growth rates of brightening film production capacity and output in mainland China have reached 19.6% and 22.7% respectively. Currently, the newly built and planned projects for mainland brightening film include the second phase of Zhejiang Jinhui Optoelectronic Materials Co., Ltd., the 36 million square meters/year brightening film project, the 18 million square meters/year brightening film project of Zhejiang Jinhong New Materials Technology Co., Ltd., and the 12 million square meters/year brightening film project of Zhejiang Nanyang Technology Co., Ltd. In recent years, with the gradual industrialization of independent technologies in mainland China, the brightening film has ushered in the opportunity for rapid development.
diffusion film: Domestic enterprises master the core technology and have room for improvement in production capacity
diffusion film mainly consists of three layers of structure, including the lowermost anti-scratch layer, the middle transparent PET substrate layer and the uppermost diffusion layer. The working principle of the
diffusion film is that light is incident from the bottom anti-scratch layer, and then penetrates the highly transparent PET substrate, and then is scattered by the diffusion particles dispersed in the diffusion coating to form a uniform surface light source. Most of the diffused particles are spherical, and their function is similar to that of convex lenses. When light passes through these particles, it is focused to a certain exit angle, thereby achieving the function of enhancing the brightness of the emitted light. In addition, particles of different particle sizes in the diffusion layer also ensure that light will not flow directly out of the diffusion film, thus achieving the effect of atomization.
In the backlight module, 1-2 diffusion films are generally required. The lower diffusion film is close to the light guide plate and is used to convert the uneven light source emitted from the light guide plate into a surface light source that is uniformly distributed and blurs the dots, and at the same time it serves to mask the dots of the light guide plate printing dots or other optical defects; the upper diffusion film is located on the uppermost side of the backlight module and has high light penetration ability, which can improve the viewing angle, increase the softness of the light source, and both diffusion and protection of the brightening film. The production methods of
diffusion film are coated and non-coated. The former is to make a diffusion film by applying a diffusion layer (made of transparent resin mixed light diffusion material) on a PET substrate; while the latter is to make a diffusion film by using PC as the substrate and use roller hot pressing to form a concave and convex rough surface. Among them, the coated diffusion film has the advantages of high light transmittance, large haze adjustment range, and good appearance quality. It is the first choice for high-end backlight module diffusion film.Currently, the coating process technologies are Japan's Huihe, Zhiji Industrial and Mumo Industrial, South Korea's SKC, Shinhe and Shihan, Changxing Chemistry, Xuanmao Technology, Huahong New Technology and Dailen from Taiwan, Kangdexin, Kaixinsen, Jizhi Technology, Yamao Technology, Lekai, etc.
In 2017, the diffusion membrane production capacity of mainland China was 140 million square meters per year, and the operating rate was close to 80%. The main manufacturers include Jizhi Technology, Dongxucheng, Lekai, Kangdexin, Shanyoudishan, Kaixinsen, Changxing Optics, Changsong Technology, Yisheng Optics, Warwick New Materials, etc. At present, the production of mainland diffusion membranes cannot meet the demand and needs to be imported from abroad.
reflective film: In the advancement of domestic production, the attack on the mid-to-high-end market
reflective film is generally placed at the bottom of the backlight module. The main purpose is to reflect the light leaking from the light guide plate and then return to the panel side, thereby reducing light loss and increasing brightness.
reflective film can generally be divided into silver-plated reflective film and white reflective film according to the different coating materials. The metal coating of silver-plated reflective film has a high conductivity, shallow penetration depth, the reflective rate is the best, but it is expensive; in comparison, the white reflective film has a low price, and can be divided into general white reflective film, white diffuse reflective film and composite reflective film according to the difference in the number of layers. Among them, the universal white reflective film is a reflective polyester film containing fine bubbles of different bubble diameters and sizes after being stretched to a PET substrate. The finer the finer the fine bubbles and the higher the density, the higher the reflectivity; the white diffuse reflective film is coated with formula materials on the optical surface of the universal white reflective film to form an anti-adsorption layer to increase the reflection uniformity of the reflective film; the composite reflective film is superimposed and composited by multi-layer films, and the reflected light vector and vibration direction on the interface of each superimposed film are the same in the reflection of light, so that the synthetic light reflectivity is the best in the white reflective film.
According to CNCET statistics, the world's reflective film production for backlight film groups in 2017 was about 193 million square meters, and the annual average growth rate from 2013 to 2017 was 7.9%. The main manufacturers include the US-Japanese joint venture DuPont Teijin, Japan Toray, South Korea SKC, Japan Mitsubishi Resin, and Taiwan's Jizhi Electric and Jinying Industrial.
In 2017, the production capacity of reflective films for backlight film groups in mainland China was about 56 million square meters per year, and the output was about 45 million square meters. Mainland Chinese production enterprises include Dongxucheng, Jizhi Technology, Changxing Optics, Zhengde Optoelectronics, Liangshitongmingke, Lanpucheng, Changyang Technology, Guanqi Electronics, Jinhao Optoelectronics, etc.
glass substrate : Corning occupies half of the market, and the large-size domestic supply is insufficient
Since the production of substrate glass is the production capacity of supporting downstream panel factories, with the production of high-generation LCD panel lines above G6, it is expected that the substrate glass industry will overall maintain a slight growth in the next few years. This is mainly due to the improvement of the average size of the LCD screen.
has very strict requirements on the properties and quality of substrate glass used in liquid crystal display panels. As consumers have increasingly high requirements for the display quality of display screens, the difficulty of the preparation process of panel manufacturers is correspondingly increasing, and the production, transportation and post-processing of ultra-thin substrate glass less than 1 mm is also put forward very strict requirements on the physical and chemical properties and quality of substrate glass.
Currently, the manufacturing processes of substrate glass mainly include three types: float method, hole down-leading method and overflow method. The glass under the flow hole guide method is directly in contact with the metal roller during forming, which makes the double-sided quality of the glass not high, and the glass needs to be polished, which increases the processing difficulty, so it is not suitable for the TFT-LCD panel industry. The forming process of Corning in the United States is the mainstream process for producing substrate glass for TFT-LCD. When forming overflow method, the surface of the glass plate only comes into contact with air to form a natural surface. The apparent quality is very high, but the disadvantage is that it is not easy to make high-generation large-size substrate glass and has a small production capacity. Asahi Glass Japan has developed a technology for producing substrate glass with floating method, which can easily expand the area of substrate glass and reduce unit cost, but when the tin tank is molded, the side of the liquid tin contacting the liquid tin needs to be polished to remove the tin layer.
The global glass substrate market is mainly controlled by Corning, the United States, with a market share of up to 50%.In addition, Japan's Asahi Glass and Electric Glass market share is 25.8% and 19.6% respectively. After years of accumulation, local substrate glass manufacturers in mainland China currently mainly include Rainbow Group , Dongxu Optoelectronics and China Building Materials. Compared with foreign companies such as Corning and Asahi Glass, they mainly use G8.5 lines and above. The above three mainland manufacturers are basically put into production in G4.5-G6.
In May 2017, Rainbow Group and Corning, the United States cooperated to build an 8.6-generation LCD substrate glass rear-section processing production line in Xianyang and Chengdu. At the same time, Dongxu Optoelectronics and Japan Electric Glass built a G8.5-line flat-panel display substrate glass processing plant in Fuqing City, Fujian Province. The first batch of 8.5-generation glass substrates were successfully launched in May 2017 and were sent to BOE for batch certification.
color filter: partially made by panel manufacturers, nearly 70% rely on imported
color filters. The structure includes glass substrate, black matrix, color layer, protective film and ITO conductive film. The three primary colors of R, G, and B of the color filter are arranged in a certain pattern and correspond one by one to the TFT subpixels of the TFT substrate. The white light emitted by the backlight source becomes the corresponding R, G, and B color light after being filtered. The voltage value applied to each sub-pixel is adjusted through the TFT array, and the transmission intensity of each color light is changed. RGB color light of different intensities is mixed together to achieve color display. The production process of
color filter is to make an anti-reflection light shielding layer - a black matrix on a transparent glass substrate, and then make a color filter film layer with transparent red, green and blue primary colors in sequence, then apply a smooth protective layer on the filter film, and finally sputter a transparent ITO conductive film. The core process of color filter production is the preparation of color filter films. At present, the commonly used preparation methods for color filter films are mainly pigment dispersion, dyeing, printing and electrodeposition. In recent years, inkjet printing has appeared in Japan. Some of them use homemade color filters, such as Samsung's homemade ratio is 75%, and Chimei and LG's homemade rate is as high as more than 90%. BOE and Tianma Microelectronics in mainland my country also have their own color filter factories, but the proportion of self-made products is not as good as that of South Korea and Taiwan, and about 70% need to be imported. The main sources of color filters in mainland China are Japanese letterpress printing, Japanese ink, and Toray. These three companies account for 76% of the global market share of color filters. Other companies include Anders, MicroTechnology Research, Japan's Hi-Meng, etc., AUO, Chime, Dahong Technology, Hexin Optoelectronics, Zhanmao Optoelectronics, Taiwan's Shenghua, etc., and Samsung, LG, STI, etc. in South Korea.
According to CNCET statistics, in 2017, the global color filter production capacity reached 300 million square meters. In 2017, the production capacity of color filters in mainland China reached 9.5 million pieces per year, and the consumption was 18 million pieces, more than two-thirds of which were imported. The main production capacity of color filters in mainland China includes: Wuhan Tianma's 4.5 generation line, Jianteng's 5 generation line, Shanghai Yidian's 5 generation line, Shenzhen Chao Optoelectronic's 5 generation line, Beijing Kangda Yingcai's 5 generation line, Nanjing Zhong Electric Panda's 6 generation line, as well as Shenzhen Laibao, Nangol , Shenzhen BYD , Hunan Puzhao Aibole's 2.5 generation line, etc., Kunshan Dongxu's 5 generation line, etc.
Currently, the main new projects of color filters in mainland China include the second and third phases of Dongxu (Kunshan) Display Materials Co., Ltd., with a scale of 1.38 million pieces/year, and the total scale of Dongxu (Kunshan) is 1.98 million pieces/year.
target material: Domestic demand is rising rapidly, ITO target replacement space is large
The main target materials used in flat panel display manufacturing are molybdenum aluminum copper metal target materials and indium tin oxide (ITO) target materials . Among them, high-purity molybdenum targets and ITO targets are both key core raw materials in the manufacturing of liquid crystal flat panel displays. Molybdenum targets are mainly used as electrode wiring films, and ITO targets are mainly used as transparent conductive films. Among them, the total demand for molybdenum targets and ITO targets is around 60% to 70%.
display glass substrate size is increasing, which is expected to increase the demand for target materials. As the size of display glass substrates and some equipment display screens gradually increases in various eras, the demand for sputtering targets for display panels is expected to continue to increase.
The domestic market size of display panel target materials is expected to reach 29.1 billion yuan in 2024, accounting for more than half of the global proportion. According to data from IHS and CADI Consultants, assuming that the target market accounts for 5% of the display panel market, the global target market size is expected to reach 54.9 billion yuan in 2024; and according to data from CADI Consultants, the domestic display panel target market size will be 18% from 2014 to 2024, and it is expected to reach 29.1 billion yuan in 2024, accounting for 52.9%.
domestic demand for molybdenum targets accounts for more than half of the world, with a domestic production rate of about 50%. There is still room for replacement for wide-format molybdenum targets . The global use of display panel molybdenum target materials is about 1,000 tons, and the domestic demand is about 50% to 60%, and the corresponding market size is about 600 million yuan. The major global molybdenum target manufacturers include Panshi in Austria, Hitachi in Japan, and Sifeng Electronics, a subsidiary of Longhua Technology in China. At present, the domestic molybdenum target market is mainly occupied by Panshi and Sifeng Electronics. Panshi mainly produces wide targets, while Sifeng Electronics mainly produces strip targets. Overall, the domestic production rate of molybdenum targets in the display panel production line can reach about 50%, but the proportion of wide-frame molybdenum targets is still not high. Sifeng Electronics has also begun to expand to its wide-scale target business and is the only manufacturer in China that can produce wide-frame molybdenum targets. It is expected to gradually realize domestic substitution in the future.
ITO The target material market size accounts for the largest proportion, with a low domestic production rate, and urgently needs domestic replacement. global display panel ITO target usage is about 1,600 tons, domestic demand is about 800 tons, and corresponding market size is about 7 billion yuan. The major global ITO target manufacturers include Samsung in South Korea, Mitsui in Japan, Jinglian Optoelectronics in China, and Guangdong Pioneer in China. At present, the domestic ITO target market is mainly monopolized by leading overseas companies, with domestic manufacturers having a share of less than 10%. It is expected that with the transition from panel production capacity to domestically, the domestic production rate of ITO targets is expected to continue to increase.
photomask version: high industry barriers, obvious monopoly abroad
photomask version is generally called photomask. It is a graphic master used in the photolithography process in microelectronics manufacturing. It forms a mask pattern on the transparent substrate by an opaque shading film and transfers the pattern to the product substrate through exposure. It is one of the most important consumables in the lithography process. As a mold, the circuit pattern on the mask plate is copied to the chip or liquid crystal panel glass through lithography technology, thereby mass-producing products such as integrated circuits or liquid crystal panels. The raw materials of the
photomask version are mainly substrates (synthetic quartz , borosilicate glass and soda glass, etc.), and downstream applications include flat panel display, integrated circuits, touch screens, circuit boards, etc. The industrial chain of the photomask version industry is divided into upstream graphic design, photomask equipment and materials industries, midstream photomask version manufacturing and downstream microelectronics application. Photomask version manufacturers are divided into two types: selling photomask versions to independent commercial manufacturers of other companies, such as Qingyi Optoelectronics, etc.; exclusive manufacturers that are produced and used by themselves, such as TSMC. At present, photomask plates are mainly professional manufacturers worldwide, while photomask plate manufacturers mainly use the method of purchasing photomask plate substrates, and a few manufacturers have upstream substrate production capabilities. The substrate used for the upstream raw materials of
is mainly synthetic quartz. The glasses used to make photomask plates include synthetic quartz, borosilicate glass and soda glass. Among them, synthetic quartz is the most chemically stable, with the advantages of high hardness, low coefficient of expansion and strong light transmission. They are suitable for the production of products with high precision requirements and are widely used in the manufacture of photomasks for LSI and large masks for FPD. However, quartz is costly and now tends to develop high-quality synthetic quartz materials, which can provide wide light projection areas, low impurity content and few physical defects, and with the requirements of low expansion rates and deep UVs, it has become increasingly widespread.
Synthetic quartz is difficult to manufacture.Currently, the most important projection photomask substrate material used for submicron lithography is synthetic quartz. Synthetic quartz is made of SiCI4 as raw material and is synthesized by vapor deposition (CVD). The principle is to transfer the volatile liquid SiCI4 into hydrogen/oxygen combustion gas and react with water vapor to form ambly silicon dioxide, and deposit it on a high-temperature rotating target material, and finally melt it into high-purity quartz glass. Synthetic quartz has the characteristics of a wide light-projected aluminum region, low impurity content and few physical defects.
photomask plate substrate has long been dependent on imports and has monopolized raw materials abroad. At present, upstream raw material manufacturers of photomask versions are mainly concentrated in Japan and South Korea. Several domestic companies are capable of producing them, but they are mainly concentrated in small and medium-sized sizes. The product application industry is also mostly in low-end industries such as TP and PCB. For high-precision and high-generation panel substrates for semiconductors, they are basically monopolized by Japan and South Korea.
photomask version manufacturing: high industry concentration, high-end products rely on imports. In the semiconductor field, most of the photomask versions used by the world's most advanced chip manufacturers such as Intel, Samsung, and TSMC are produced by their own professional factories. For non-advanced processes, especially 60nm and above process products, the trend of product outsourcing is very obvious. The independent photomask version has a high market concentration and a serious oligopoly. Phototronics, Big Japan Printing DNP and Japanese Letterpress Printing Toppan account for more than 80% of the market share. In the field of display panels, my country's photomask version manufacturing is mainly used in flat panel displays, touch controls and circuit boards, which can only meet the market demand of domestic mid- and low-end products. High-end photomask version is directly provided by foreign companies. In 2018, the domestic production rate of TFT-LCD and OLED photomask plates in China was 9.7%, and the domestic production rate of some high-precision photomask plates was 2.5%.
photomask version manufacturing technology barriers are high and the domestic self-sufficiency rate is low. my country's photomask version manufacturing is mainly concentrated in a few enterprises and some scientific research institutes. In the panel field, the only domestic companies that can support TFT photomask versions are Luwei Optoelectronics and Qingyi Optoelectronics, which are mainly aimed at photomask versions below G8.5; in the semiconductor field, a few companies such as Wuxi China Resources and Wuxi Zhongwei can only manufacture stepper masks above 0.13μm. All photomask versions such as HTM, GTM, PSM rely on imports.
It is estimated that the demand for display panel photomask version in mainland China will increase to 3.9 billion yuan in 2023, corresponding to the demand for synthetic quartz will reach 1.6 billion yuan. The global demand for photomask versions for display panels in 2018 was 89.5 billion yen (about 5.9 billion yuan), corresponding to the demand for synthetic quartz substrates was about 2.4 billion yuan. With the global shift of display panels to mainland China, it is expected that the demand for display panel photomask versions in mainland China will grow to 51% in 2023. According to HIS data, the CAGR of the global demand area of new display panels from 2016 to 2025 will reach 5.5%. Against this background, it is expected that the market size of display panel photomask film version in mainland China will grow to 3.9 billion yuan in 2023, and the market size of synthetic quartz will reach 1.6 billion yuan, with a 4-year CAGR of 7.5%.
photoresist: key materials for panel manufacturing, seeking breakthroughs in endogenous and epitaxial
photoresist is a key material for LCD panel manufacturing. According to the use object, it can be divided into RGB glue, BM glue, OC glue, PS glue, TFT glue, etc. The lithography process includes surface preparation, coating of photoresist, pre-baking, alignment exposure, development, firm film, development inspection, etching, peeling, final inspection and other steps to achieve replication and transfer of patterns and manufacture specific microstructures.
From the perspective of global photoresist market competition pattern, the photoresist market is mainly dominated by Japanese and Korean companies. Among them, LCD optical resists are subdivided according to their application. The main suppliers of TFT photoresist include Merck, TOK, etc.; the main suppliers of BM photoresist include Mitsubishi Chemical, Nippon Steel, TOK, CMC, SDI, etc.; the main suppliers of OC photoresist include JSR, JNC, LGC, Samsung, Cologne, etc.; the main suppliers of PS photoresist include JSR, CMC, Samsung, LGC, TNP, etc.; the main suppliers of RGB photoresist include DWC, LGC, DFC, CMC, JSR, SDI, etc.
In terms of quantity, with the rapid construction of LCD panel production capacity in previous years, the usage of LCD photoresist has increased significantly. Taking RGB photoresist and BM photoresist as examples, the total usage has increased from 173,000 tons in 2013 to 280,000 tons in 2019. From the perspective of market size, according to our calculations, the current global LCD photoresist market size is about 10 billion yuan, and it is expected to remain stable in the next few years.
Domestic photoresist gradually goes from mid-to-low to high-end. Domestic manufacturers continue to develop and develop photoresist core technologies through endogenous extension, gradually breaking the monopoly of Japanese and Korean enterprises.
(1) Extension: Take Jacques Technology as an example. Recently, Jacques Technology's subsidiary Siyang International signed a "Business Transfer Agreement" with LG Chemistry, intending to purchase some of the operating assets of the color photoresist business unit under LG Chemistry, including some production machinery and equipment, inventory, intellectual property intangible assets, operating accounts receivable, etc., and after delivery, invested in the construction of a color photoresist factory in South Korea and became a long-term supplier of LG Display Co..
(2) Endogenous aspect: Take Boyan Electronics as an example. Boyan Electronics has introduced Japanese and Korean industry experts with rich R&D experience. It currently has 100 employees, and R&D personnel account for 40% of the company's total number, including 23 master's degree or above, 4 Japanese and Korean experts, and 2 Taiwanese experts in Taiwan. Through long-term development, the company has completed the development and pilot work of BM photoresist, achieved stable production, and had normal supply capacity of 100 kilograms. The company's main products include LCD black photoresist, color photoresist, PS, and positive photoresist.
According to our calculations, with the transfer of LCD industry centers, the market size and localization rate of LCD photoresist in my country are expected to gradually increase. It is expected that from 2019 to 2023, the market size of LCD photoresist in my country will increase from 4 billion yuan to 6.9 billion yuan, with a CAGR of 14.6% in 4 years; the localization rate of LCD photoresist materials is expected to increase rapidly from 5% to 40%. Domestic material leaders are expected to benefit fully.
Summary
In 2017, the market sizes of mixed crystals, polarizers, backlight modules, glass substrates, and color filters in mainland China were 4.49 billion yuan, 11.20 billion yuan, 27.44 billion yuan, 14.33 billion yuan, and 16.88 billion yuan, respectively. According to our estimates, by 2020, the scale of the above markets will reach 6.24 billion yuan, 15.58 billion yuan, 38.16 billion yuan, 19.93 billion yuan, and 23.47 billion yuan, respectively. At present, the domestic production rate of TAC films and PVA films of raw materials is the lowest; followed by polarizers and glass substrates, with the domestic production rates of 10% and 12% respectively; the domestic production rates of color filters and mixed crystal materials are 30% and 26% respectively; the domestic production rates of brightening films, diffusion films and reflective films are above 50%; the domestic production rates of backlight modules are the highest, and basically domestic production is self-supply.
Therefore, in general, (1) The domestic production rate of polarizers, glass substrates, PVA films, and TAC films is below 20%. The product is still in the introduction period and needs to wait for technological breakthroughs, customer verification or product volume. The domestic production rate has not yet entered the fast lane. (2) The localization rate of color filters and mixed crystal materials is between 20% and 50%. Mainland Chinese companies usually have their own technology and independent research and development capabilities. The products have been verified by the market. Leading companies have the ability to expand production, and the localization rate is expected to increase rapidly. (3) The domestic production rate of backlight modules, reflective films, diffusion films and brightening films has reached more than 50%, and there is a certain pressure to further increase.
investment advice (omitted, see the original report for details)
China's LCD industry has developed rapidly in recent years, and panel companies represented by BOE, Huaxing Optoelectronics, Tianma, etc. have risen rapidly, and the industrial center has shown a significant shift to China. Under fierce market competition, Japanese and Korean panel production capacity has gradually withdrawn. In 2013, mainland China's TFT-LCD panel revenue accounted for about 10% of the world. Currently, the revenue of mainland China's TFT-LCD panel manufacturers accounted for more than 40% of the world's revenue. At the same time, the LCD industry showed marginal improvement, panel prices bottomed out and rebounded, and the industry's prosperity was expected to rise. On this basis, domestic materials are expected to benefit fully.In terms of the market size of
, according to our estimates, the market sizes of mixed crystals, polarizers, backlight modules, glass substrates, and color filters in mainland China in 2017 were RMB 33/112/274/143/16.9 billion, totaling RMB 73.2 billion; by 2020, the scale of the above market is expected to reach RMB 46/156/382/199/23.5 billion, totaling RMB 101.7 billion, with a compound growth rate of 11.6%. The target materials, photoresist and other materials used in the panel manufacturing process also have a market scale of 10 billion.
Currently, the domestic production rate of polarizers, glass substrates, PVA films, and TAC films is below 20%. The product is still in the introduction period, and it still needs to wait for technological breakthroughs, customer verification or product increase process. The domestic production rate has not yet entered the fast lane; the domestic production rate of color filters and mixed crystal materials is between 20% and 50%. Mainland Chinese companies usually have their own technology and independent research and development capabilities, and the products have been verified by the market. Leading enterprises have the ability to expand production, and the domestic production rate is expected to increase rapidly; the domestic production rate of backlight modules, reflective films, diffusion films, and brightening films have reached more than 50%, and there is a certain pressure to further increase.
LCD The industrial center is rapidly shifting to mainland China, and the industry's prosperity is expected to rise. Under the general trend of localization, it is recommended to plan leading companies with mass production capabilities and deep technical accumulation, and are expected to quickly achieve market share replacement.
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(The report’s views belong to the original author and are for reference only. Report source: CITIC Securities )
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