Affected by the tightening of upstream raw materials, some panel enterprises in China fell into a production crisis.
According to the data of ovirovo, recently, some panel raw material suppliers have reduced their production capacity. Although Huike, sharp, Huaxing, BOE and other panel enterprises still have inventory, the continuous lack of raw materials will affect the panel supply, thus transmitting the pressure to the whole industrial chain.
The reporter of Securities Daily learned that at present, the factories of panel raw material suppliers such as TSMC Shanghai and Suzhou Gaochuang electronics have resumed work, and other enterprises are also preparing for resumption of work and production.
Industry insiders believe that next, the panel price may rise, and the price of wearable and car mounted consumer electronics products will also rise to a certain extent in the second half of the year.
upstream plant starts closed-loop production
According to the report of ovirovo, at present, the L1 and L2 production lines of Hengmei optoelectronics, the upstream supplier of the panel, are completely shut down.
It is understood that Hengmei optoelectronics is a panel display material supplier engaged in polarizer and optical function film. It has two factories, of which the polarizer production capacity is concentrated in Kunshan factory and is mainly supplied to BOE, TCL Huaxing, Huike and other panel enterprises.
“Hengmei optoelectronics accounts for 50%, 23%, 20%, 10% and 5% of the polarizer supply of rainbow optoelectronics, sharp, Huike, TCL Huaxing and BOE respectively. As a core raw material supplier, Hengmei optoelectronics is greatly affected, which also leads to tight supply to a certain extent.” Yi Xianjing, deputy general manager of Dixian information consulting, told the reporter of Securities Daily.
At the same time, the production capacity of LCD and backlight module manufacturers in the panel supply chain has also been affected. It is reported that at present, the production of Infovision Optoelectronics (Kunshan) Co.Ltd(688055) supporting module factory has been reduced, and Youda Kunshan module factory is also shut down.
“Module factory is a labor-intensive industry, so there has been a relatively serious production reduction.” Lin Zhi, chief analyst at witdisplay, said.
In addition, in terms of printed circuit boards and PCBs of electronic components, consumer electronics component enterprises such as TSMC, taioptoelectronics, Xinxing and Nandian also reduced production to varying degrees. They mainly supply mobile phones, networks and servers, displays and other manufacturers. Many factories have been shut down since April 2.
On April 19, the relevant person of TSMC Shanghai factory told the reporter of Securities Daily: “at present, the factory has resumed production and adopted closed-loop production. Due to the reduction of personnel, the production capacity has been affected to some extent, but the basic supply can be completed.” The internal staff of China Southern Power revealed that they are still waiting for the notice of resumption of production and work. Preparations are under way and closed-loop production is planned.
“At present, panel factories still have some materials in stock to maintain production. At the same time, other polarizer factories can supplement production capacity, and the shortage of modules and components is only a short-term phenomenon.” Yi Xianjing thinks.
A supply chain source said that the short-term shutdown will affect the production and shipment of the complete machine end. With the release of control, the complete machine factory can still increase the production volume by adjusting the production shift in the future.
terminal price or recovery
The upstream raw material supply of this round is tight, and the affected panel production lines are mainly those below G6, involving the fields of wear, vehicle, industrial control and so on.
The reporter learned that Everdisplay Optronics (Shanghai) Co.Ltd(688538) ‘s G4 5 and g6oled production lines, as well as Tianma’s g5lcd production lines and G5 5oled production lines are all located in Shanghai, and related products are used in the fields of wear, vehicle, medical treatment and industrial control. At present, 50% of the production capacity of the two production lines of Hehui radio and television may be affected due to the reduction of employees and shortage of materials. Tianma adopts closed-loop production, and the production capacity is also weakened to a certain extent.
In addition, Youda G6 LCD production line and Longteng G5 5LCD、 Visionox Technology Inc(002387) G5. 5oled and Mengxian – Visionox Technology Inc(002387) oled micro display production lines are located in Kunshan. Among them, Youda products are applied to the production line of high-end Nb and curved MNT panels, which has been shut down since April 8. The company said that it is allocating inventory to reduce the impact on customers. The other three production lines are respectively applied to vehicle mounted, hard screen, wearable and other fields, and relevant factories have adopted closed-loop production at present. Suzhou Gaochuang, a display manufacturer, also resumed production after three days of shutdown.
Tianyancha app shows that at present, there are more than 600 enterprises with business scope including “LCD panel, LCD and OLED” in Jiangsu, Zhejiang and Shanghai, accounting for more than 10% in the country. The market share of Chinese mainland panel factory in display panel increased to 52% in 2021. The resumption of panel industry chain manufacturers will have an important impact on the supply chain.
With regard to the supply of panel production, BOE recently said on the investor interaction platform that at present, the supply of DDIC (display driver chip) is tight in the industry as a whole. However, the operation of each production line of the company is good, there is no shortage of materials affecting production, and is actively promoting the localization and localization of raw materials. Youda also said that it would continue to digest inventory and deal with supply chain risks.
“The overall small-size panel production capacity has been reduced by nearly half. However, Huike, sharp, Huaxing, BOE and other panel factories have adopted the stock up strategy in advance, which has been warned. At the same time, the demand for electronic consumption has begun to slow down, and the supply side is not affected temporarily. Enterprises still have a certain inventory to cope with the changes in demand. At present, the overall impact is still controllable.” Said Chen Hui, general manager of Orville.
Yi Xianjing believes that at present, the inventory level of panel manufacturers is in two weeks. If the production reduction is maintained, it is estimated that there will be a serious supply impact by May. However, combined with some measures for resumption of work and production, the impact is still controllable. “Affected by market demand being overdrawn in advance and tight supply, the decline of panel factories will continue to decrease and the price may continue to decline, and the prices of panel and consumer electronics will pick up.”
