According to BusinessKorea, as LCD panel prices continue to fall, Chinese LCD makers are beginning to cut production to ease the recession.
China's BOE ranked first in the world in terms of LCD shipments this year, with a market share of 18.2%, and has decided to cut production. The company has begun to reduce the production of the 10.5-generation LCD display line by 25% from July, and the production of other LCD display lines by 10%. Huaxing Optoelectronics and Huike also cut the operating rates of 8.5 generation LCD monitor products by 10% and 20% respectively.
In addition to falling prices, the Chinese government has reduced support for panel makers. China Display Corporation has been increasing the production of liquid crystal displays through subsidies from local governments. However, the Chinese government has recently decided to change its support measures because Chinese companies' share of the LCD market will exceed 50%, and Chinese companies' expansion competition will become fierce.
Therefore, Korean market experts said that Chinese display manufacturers are very likely to abandon excessive competition in factory expansion and further alleviate the situation of oversupply. China's share of the global LCD market is expected to increase from 29% in 2016 to 54% in 2020.
According to IHS Markit research data from global market research firm, as of August, the price of 32-inch and 55-inch LCD TV panels was $33 (39,300 won) and $106 (126,340 won), respectively, down 20% and 26% from the beginning of the year.