Sharp Growth of Chinese Display Industry and Response Measure
|Author||Seo, Dong- Hyouk||Date||2014.03.04||Issue No||580|
Chinese display sector grew into the third largest industry globally, surpassing Japan for the first time in terms of its sales in 2012.
● With a lever of its largest TV, mobile phone and personal computer market, Chinese display industry has recorded 20.1% growth rate on an annual basis from 2005 to 2013,,and that number is overwhelmingly higher than those of Korea(7.7%), Taiwan(4.3%) and Japan(1.5%).
● As Chinese display has grown sharply thanks to the full support of Chinese government, the global top spots of display market have been taken by four major countries, which is expected to bring about more intense competition among the countries.
● Ratio of China’s investment in display facility in the total global facility investment, has dramatically grown to 53% in 2013 from 37% in 2011, and as a consequence, the gap between Korean and China in terms of LDC production capacity, is prospected to dramatically fall from 37.7%(2013) to 23.3 % in 2015 and to 12.9% in 2017.
● The LCD production capacity of China would surpass that of Korea as early as 2018, which raises the concern that competition would be intensified among producing countries. Not only that, China is the only country which is most aggressively investing in AMOLDED beside Korea.
● In order to use the sharp growth of Chinese display industry as an opportunity and lead the global market even after 10 years , it is crucial to secure the following three elements: differentiation, customer acquisition and new next generation technology. Not only that, it is also important to create a long-term strategy which reestablishes industrial concept.
● It is particularly critical to differentiate LCD product development further, take a preemptive response to the development of post- LCD by securing next-generation technology, and reinforce the ecology between upstream and downstream industries.
● It is urgent to come up with a private ？public response measure to use the promotion of Chinese LCD industry as an opportunity by actively utilizing the 8th generation production line within China to establish network alliance with local TV producers, and strengthening the supply chain structure between Korea and China.
● It is required to create a long-term development strategy which reestablishes a future-oriented industrial concept so that display industry would be able to play a role of sustainable growth engine.