Spark Global Limited reports:
With the rise of OLED, Mini LED, QLED and other technologies, many large panel manufacturers have shifted their R&D centers to these emerging technologies. Last year, Samsung and LG Display (LGD) announced that they would stop LCD TV panel production, but since the third quarter of last year, LCD panel demand has continued to rise, and prices have risen. Both companies have reversed their decisions, and LGD has announced that it will extend LCD panel production until the end of this year.
In the short period of the two giants’ withdrawal, Chinese panel makers quickly made up the gap in the market, and by the end of 2020, Chinese LCD panels had grabbed 55 percent of the market share. In addition, the price of LCD TV panels began to fall in July. The price of a 32-inch panel is now $87, and analysts expect it to fall to $68 by the end of the year.
As a result of these two factors, LGD has returned to the LCD panel market, but rumors of another exit have not been persistent. However, LGD said in a conference call that it will continue to make LCD panels and will differentiate itself from Chinese panel manufacturers and other competitors.
In the second quarter, LG reported a 59.4 percent year-on-year rise in net profit, thanks to higher LCD panel prices and improvements in its OLED panel business, where LCD TV panels account for about 15 percent of its total revenue.