Huaxing Optoelectronics considers the construction of the second 8.5 generation line

Following the agreement reached on the 8.5-generation line of Nanjing last month, TCL-led Huaxing Optoelectronics is also planning a new round of capacity improvement plan. On July 11, the reporter learned from the relevant channels that the total production capacity of Huaxing Optoelectronics continued to rise after reaching the full capacity of design, and it is expected to increase by 40% in the next year.

   Liang Qichun, assistant president of TCL Group, said that before the Huaxing Optoelectronics had introduced a 4.5-generation test line, the company is now considering the construction of a second 8.5-generation production line, which can be upgraded to the OLED platform in the future. This means that by 2015, the number of high-generation LCD panel lines in mainland China is expected to increase to eight, making it the world's largest producer of LCD panels.

Domestic panel self-sufficiency rate has increased significantly

The source revealed to reporters that Shenzhen Huaxing Optoelectronics' 8.5-generation LCD panel project has increased to 120,000 glass substrates in the first half of this year after achieving 108,000-piece design full-load capacity in September last year. It plans to increase production capacity to 130,000 at the end of the third quarter. On the substrate/month, it is expected to increase the production capacity to 140,000 substrates per month in the middle of next year. This is a 40% increase over the original design full load capacity.

More importantly, according to industry rumors, Huaxing Optoelectronics is actively researching and preparing for the second factory project and the construction of supporting industrial chain.

Just last month, Sharp and China Electronic Information Industry Group (CEC) reached an agreement, Sharp and CEC set up an 8.5-generation LCD panel and module joint venture in Nanjing. Together with the Samsung and LG projects that have been mass-produced and will be mass-produced this year and next, the high-generation LCD panel line in mainland China is expected to increase to 8 and become the world's largest LCD panel production site.

Sources pointed out that the self-sufficiency rate of domestic LCD panels is still only 30%, and the self-sufficiency rate will reach 80% after the above-mentioned high generation line falls.

The reporter learned that before the launch of the domestic high-generation LCD panel project, China's color TV industry has been facing the situation of “lack of core and less screen”. The import volume of LCD panels has also been ranked among the top five in China's bulk commodity imports, and a large amount of profits have been earned by overseas companies. .

Panel industry receives government subsidy support

It is worth noting that as a technology- and capital-intensive industry, the panel industry has a shadow of government subsidies from investment to expansion. Among them, South Korea has the most outstanding support for Samsung and LG.

As a "latecomer" domestic LCD panel project "has a very real problem, as a new project, the depreciation cost in the early stage is significantly higher than the foreign similar enterprises that have been running for many years," the source said, from a commercial point of view, Without subsidies, no company will be willing to invest in this industry.

Take Huaxing Optoelectronics as an example. The debt of Huaxing Optoelectronics of RMB 5.1 billion has recently been approved by the government. The TCL Group stated that it has been confirmed by communication with the auditing agency that the debt exemption is recognized as a government grant related to the assets and should be recognized as deferred income and distributed equally over the useful life of the relevant assets and recognised in profit or loss for the current period. This will enable the “deferred income” of Huaxing Optoelectronics to effectively offset the depreciation cost in the course of competition with peers at home and abroad in the next few years. “Standing on the same starting line as the companies that invested in the previous stage”.

( This article is reproduced on the Internet. The texts and opinions expressed in this article have not been confirmed by this site, nor do they represent the position of Gaogong LED . Readers need to verify the relevant content by themselves. )

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