BOE Chen Yanshun: The strongest "cold wave" in the LCD panel industry is coming to an end
“BOE ’s vision is to have our products and services in the family in the square and in every place where humans live.” BOE Chairman Chen Yanshun took this as the end of his speech, even if sitting in the interview room, he still remembers Talk to the reporter who knows the origin of this sentence.
On November 26, BOE Global Innovation Partners Conference 2019 (hereinafter referred to as BOE IPC · 2019) was held in Beijing. BOE IPC, which has been successfully held for four consecutive years, has become an important platform for innovation and communication in the global Internet of Things industry. At this year's conference, Chen Yanshun said to thousands of guests and partners below: The focus of our thinking is how to use technology and product innovation to expand applications and enable scenarios to promote the healthy development of the industry. "
After the morning meeting, Chen Yanshun took a break and walked into the interview room. The new head of BOE continues the tireless momentum of the previous chairman Wang Dongsheng. He revealed to the media his judgment on the market: "At the end of the first quarter of next year and the beginning of the second quarter at the latest, the industry will slowly recover."
The strongest "cold wave" in the panel industry will come to an end
According to data from the China Optical Optoelectronics Industry Association's liquid crystal branch, in the past three years, the global average price of LCD display devices (panels) has declined sloping, a drop of 38.13%; the prices of AMOLED display devices (panels) have fallen by 31.5%.
In Chen Yanshun's impression, this is probably the strongest "cold wave" the panel industry has ever experienced.
The entire panel industry is losing money in 2019. Chen Yanshun believes: "The industry is indeed in a relatively surplus stage. There are both industry reasons and low-level redundant construction reasons."
In the first three quarters of this year, BOE's revenue was 85.722 billion yuan, a year-on-year increase of 23.4%. Its market share continued to expand, but its profit declined. In this regard, Chen Yanshun analyzed that the prices of BOE Mobile and small and medium-sized products are relatively stable and profitable. The overall profit decline is mainly due to the severe price reduction of TV screens.
BOE is currently the world's largest TV screen shipment company. This year's shipments will exceed 54 million. In the 75-inch, 65-inch, 43-inch, and 32-inch segments, BOE has a global market share. Is first. "The price of large-size products has dropped significantly, which has a relatively large impact on our revenue in the TV screen segment." Chen Yanshun admitted.
However, Chen Yanshun judged that the downturn of the panel industry, which began in 2016, was about to come to an end, "this market will slowly recover in the first quarter of next year or the beginning of the second quarter at the latest." First, the average size of TV products is increasing every year. The average size of TV products this year is 46 inches. Each additional inch can digest the capacity of a 8.5 generation line. Second, there are more and more markets for transformation and innovation.
Chen Yanshun's views are basically in line with Ouyang Zhongcan, a well-known expert in the industry and an academician of the Chinese Academy of Sciences. The latter said at the first World Display Industry Conference that just ended, 5G brings a very big opportunity to ultra high-definition display. With the accelerated landing of 5G, "the panel market will rise next year." Recently, many research institutions also pointed out that the prices of mainstream panels began to stabilize in November.
Will not invest in LCD, MiniLED will burst
"In the display field, we are no longer investing in LCDs." Chen Yanshun told the China Electronics News reporter, "This industry is already in a relatively surplus stage. In the future, flexible AMOLED technology will be more mature, and good development is inevitable."
BOE Chengdu ’s 6th generation AMOLED flexible production line is now in full production with a yield of more than 85%; Mianyang ’s 6th generation flexible AMOLED production line has just been mass-produced and capacity and yield are climbing; the 6th generation flexible production line in Chongqing has also started construction.
"Next year, you will see three trends in BOE." Chen Yanshun told China Electronics News.
First, BOE's market share has continued to grow at the lowest point in the industry. When the industry improves, it must be the best performer. Second, BOE ’s flexible OLED shipments will increase significantly next year. BOE ’s flexible OLED shipments will account for approximately 18% of the global market in 2019, and shipments are planned to triple in 2020. Third, BOE Glass-based MiniLED products will be launched.
Chen Yanshun revealed that BOE is evaluating the large-scale OLED technology. In terms of technological maturity, WOLED is better than QLED, but BOE has not yet made a choice. However, he believes that MiniLED, which does not lose OLED in all performance indicators, "will explode in the next two or three years."
Tsinghua University President Qiu Yong said at the first World Display Industry Conference that in addition to LCD and OLED, new display technologies will appear. Although the results of innovation are unpredictable, this is the charm of innovation.
Chen Yanshun is very optimistic about the industry prospects of MiniLED. MiniLED has better exquisiteness and realism, and the city lighting market alone can reach 100 billion. Not only that, "the LCD backplane can also be used for MiniLED, which can consume the capacity of the existing backplane." MiniLED is now the focus of BOE. According to Chen Yanshun, whether it is the core LED chip or the glass back plate, BOE has the first-mover advantage. In order to overcome the huge difficulty in transferring technology in this field, BOE also established a joint venture with Rohinni in the United States.
Closely connected with life "let us want to stop"
On June 28 this year, Wang Dongsheng, who had been at the helm of BOE for 26 years, handed over the baton to Chen Yanshun. At that meeting, BOE proposed to develop BOE from a 100 billion yuan company to a 100 billion dollar company in 10 to 15 years.
Obviously, a single panel business cannot support such a big dream. When Chen Yanshun took over BOE CEO three years ago, he began to conceive how to transform. BOE, which just entered the semiconductor industry in 2003, asked PricewaterhouseCoopers for strategic consulting, and was asked what the corporate vision is. Chen Yanshun, who was an executive at that time, closed his eyes and thought for 5 minutes, and then wrote a paragraph: In the family in the square, in every place where humans live, there are BOE products and services, so closely related to our life that We can't stop it. He wrote this paragraph into the speech of BOE IPC2019.
In the past 16 years, BOE has become the leader of global panel companies. Thanks to finding a reproducible business model, such as building a line anywhere, it will never be one day longer than the time promised. This set of "five simultaneous, five The operation model of "guarantee, five models" has formed its unique high-end manufacturing system. "In the next ten years, we must not be limited to the world's largest panel company. We should become a global innovative company in the era of the Internet of Things." Chen Yanshun said.
Chen Yanshun emphasized in his speech that BOE's core technology is display and sensing technology based on the development of optoelectronic technology, and its core capabilities are display, sensing and system device capabilities. Through the cross-border innovation of technology and products, the development of port devices and smart IoT And smart medical field business. He made a metaphor of the image. In the past, BOE invested tens of billions of yuan in equipment. These equipments are good fields in the family. Next, don't sell millet anymore. Instead, make them into rice flowers, rice balls, rice wine, and create value.
In addition to the market share of display devices and five major products, the company continues to lead the world. In 2019, BOE has achieved 100% growth in 12 IoT innovative application markets such as medical and automotive; its smart transportation solutions serve 22 cities in China. Metro lines cover more than 80% of the national high-speed rail lines, and provide professional services to many overseas cities.
When BOE strategic partners met with Chen Yanshun, he joked and said, "Is BOE just a panel company?" After reading BOE products, he said with emotion: "You are not a simple display company, and you have applied display technology to various industries. "
Editor-in-chief: Zhao Qiang