LCD panel industry consolidation principal contradiction is not resolved soon – BOE, TFT-LCD, LCD pa
Posted by erlan | Posted in Home Entertainment | Posted on 20-10-2010
Recently, BOE Technology Group Co., Ltd. announced that the company will be restructuring of operations. It is reported that the reorganization would have been a loss is mainly large-size TFT-LCD business separated from listed companies, then, the loss of two years of the BOE is expected to turn around. It is understood, was stripped of the TFT-LCD business is expected with the SVA, IVO ground related to business integration, a new company controlled by the SASAC and has become the most powerful production of large-size TFT-LCD LCD panel enterprise. BOE structural reorganization Fact, several years ago, TFT-LCD business is the BOE has a trump card. In 1996, the BOE had a premonition that to Wang Dongsheng, chairman of TFT-LCD flat panel display, represented the future of display technology will become mainstream, then established to show the technology as the core of development strategies. 2003, the BOE to 380 million U.S. dollars to buy South Korea’s Hyundai Electronics HYNIX of TFT-LCD business, by way of capital cleverly cut into the upper liquid crystal display industry, which is China’s first overseas acquisition of a high-tech industry . In China, BOE is the industry leader in liquid crystal, in a period of time has been chasing the capital market. Today, BOE’s Korean subsidiary had been acquired from insolvent, in Beijing Yizhuang the fifth-generation TFT-LCD business also faces being stripped of the situation. The industry believes that to some extent, this means that since 2003, “the famous” overseas acquisitions end in failure. For the BOE, the business integration of more good than harm.
It is reported that BOE is expected to be listed on the company’s main business to redefine the mobile display systems business, products include STN-LCD (Super Twisted Nematic Liquid Crystal Display), OLED (organic electroluminescent display device) and so on. According to the company’s past performance shows, the above operations all have a good sales performance, it also means BOE is expected to turn around. Countries come forward to solve the two problems In addition to the corporate destiny BOE was stripped of the TFT-LCD business go from here, has also been widespread concern about the industry.
Once the business with the SVA, IVO of similar businesses together, will become the largest producer of LCD panels. The fate of this company will be related to the LCD panel industry in China’s international status. This is to TFT-LCD flat-panel display technology to represent a comprehensive alternative to traditional CRT display technology industries in transition, countries have to be considered a problem. In fact, in August last year, Ministry of Information Industry, Ministry of Science, the NDRC, the Ministry of Finance, once the leading tour visited SVA, BOE, then, the National Development Bank Chen Yuan had also personally visited Beijing Orient. Late last year, BOE, SVA, IVO three internal TFT-LCD has a fifth-generation LCD production line of enterprise that integrates with various local governments to support the three companies at last formed a “team.” In fact, for countries to integrate LCD panel industry is imperative. As the same investors, the SASAC obviously do not want to see the LCD panel of state-owned holding enterprises “civil war”, but for the LCD panel such a high input of capital and technology industries, countries would be financially unable to spread into. The overall interests of the country under consideration, three integrated LCD panel production line will actually solve two problems.
First, funding. As we all know, LCD panel production line into a huge, a production line up to hundreds of billion of investment, loss of domestic panel business has been the biggest problem is money, only BOE debt has reached about 10 billion yuan. The second is the scale. LCD panel industry is characterized by the scale of the effectiveness of past losses and its panel is difficult for enterprises too small to have a direct relationship between high cost, therefore, the combined annual output of nearly 200,000 of the production scale of the new company will bring a ray of hope.