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With the continuous growth of China's LCD TV market, LED penetration rate in large-size backlights continues to increase, and China's backlight module industry is expected to develop rapidly in the next few years. Attracted by this trend, local companies seized the opportunity to start the production of large-size backlight modules. Many Japanese, Korean and Taiwanese companies have also invested in the mainland to build factories. In addition, domestic TV factories and LCD panel factories are based on vertical integration. Strategic considerations continue to extend to the field of backlight module manufacturing, gradually forming three major forces in the field of LCD module production in China. The future competing relationship between the three parties will be the main theme of China's backlight module industry for a period of time, and it is also related to the health and development of China's entire LED industry and LCD industry.
From the perspective of manufacturing liquid crystal display, the entire industrial chain can be divided into four parts: panel, backlight, module and terminal. Since the liquid crystal panel itself does not emit light, the display function must be realized by means of the backlight module, and thus the backlight module becomes one of the key components of the liquid crystal display device. It is mainly composed of a prism sheet, a light guide plate, a backlight, a diffusion film, a reflection sheet, and an outer frame. The backlight can be divided into two major categories: CCFL and LED. At present, small and medium-sized panels have basically adopted LED as a light source. With the light-effect, price and other obstacles being alleviated, LEDs have also been installed in large-size backlight modules in a large number, and the mainstream status in the future has been stabilized. And with the large number of LEDs being used, more and more technologies such as dynamic backlight control technology, ultra-thin technology, and heat dissipation technology are applied to the backlight module, which makes the backlight module industry gradually change the labor-intensive in the past. Features, with more and more technology added value, the role in the industry chain is becoming more and more obvious. In the CCFL era, due to the weakness of the upstream panel industry chain in China, the backlight module industry has not achieved good development. The LED era will be a favorable opportunity for the accelerated development of the Chinese backlight module industry.
Overall, the current strongest demand for the development of LCD backlight modules is probably the TV factory or LCD panel factory. Due to the increasingly fierce competition in the liquid crystal display industry in recent years, companies can only effectively solve the problem of competing with major international manufacturers for key raw materials, cost reduction, and product differentiation. To this end, several major domestic TV manufacturers such as Hisense, Skyworth, Konka, etc. have entered the LCD module assembly industry and started to develop and manufacture backlight modules. Taking Hisense as an example, in September 2007, Hisense announced that it will start production of the first LCD TV module production line in China, and plans to invest 700 million yuan in three phases to complete the construction of five module production lines, which will eventually form a production of 3 million pieces per year. ability. In addition, the search for partners is also the main mode for TV manufacturers to develop backlight module factories. For example, Taiwan's main LCD panel AU Optronics has reached cooperation agreements with Changhong, TCL and Haier respectively, and established a liquid crystal module factory.
If the TV factory integrates the LCD module from the downstream of the industrial chain, for the panel factory such as BOE and Shenzhen Tianma, it will reverse the TV factory and integrate the LCD module from the upstream of the industrial chain. Strategy to achieve the purpose of increasing the added value of the product. Taking BOE as an example, from the beginning of the introduction of the 5th generation line of liquid crystal panels in 2006, it invested in the establishment of BOE Tea Valley as its supporting module manufacturer. At the 2008 FPDChina show, BOE presented a series of LED backlight products including 32-inch LCD TVs. At present, BOE Tea Valley has started to supply LED backlight modules for notebook computers and TVs.
From the current industrial development situation, in house and vertical integration are becoming more and more popular. TV factories and panel factories also have more operational resources and economic strength. Therefore, the TV factory and the panel factory set up the LCD module factory, or the TV factory and the panel factory to produce together, and finally form an industrial cluster, which will become the mainstream business model of China's future LED backlight module industry.
Although the internalization trend of LCD modules is becoming more and more obvious, LED is an important component, and it is natural for large TV manufacturers to vertically integrate them. However, any enterprise's supply of components will not be 100% dependent on internalization. In addition to the internal procurement system, it also needs to be outsourced, which also makes the independent supplier's living space. In addition, China still has a special national situation: the inland market, the rural market is vast, the sales channels are complex, and small and medium-sized brands and even cottage products have huge room for development. These provide a broad living space for LED backlight module companies. Driven by huge market demand, it is believed that there will be a large number of companies engaged in the production of small and medium-sized LCD modules, LED production and other related industries. Taking Diguang Electronics as an example, since its establishment in 1996, it has been engaged in the research, development, production and sales of LED/CCFL backlights, LED lighting and LED displays. It has been formed to include 19", 22", 26", 32", 42" and 47" multi-size backlight module products. The serialization of products and the maximization of customer base will be the key to the success of such enterprises.
Due to the increasingly fierce competition in the backlight module industry and the large labor cost in production, Korean and Taiwanese backlight module manufacturers have invested in establishing a backlight module factory in mainland China as their main development strategy. For example, Taiwan's module factory Zhongqiang Optoelectronics established factories in Suzhou, Songjiang, Nanjing and Ningbo, Ruiyi Optoelectronics established factories in Wujiang and Nanjing, Fuxiang Industrial built factories in Wujiang, Songjiang and Xiamen, and Taesan in South Korea built factories in Wujiang. Heesung built a factory in Nanjing. In addition, there are also backlight module factories established by LCD panels and TV manufacturers, Taiwan AUO, Chi Mei, Hua Ying, etc., as well as South Korea's Samsung Electronics, LG and so on. These companies either provide support to overseas parent companies, or form strategic alliances with them, and form individual industrial clusters. In the future, as Chinese TV companies intensify their penetration in the module field, these Taiwanese companies and Korean companies will also seek some form of joint venture and alliance with them to compete for customer resources with Chinese local backlight module companies. It is an important force that cannot be ignored in the future Chinese market.
Although China's large-size backlight module production is still in its infancy, the global LCD industry is mainly concentrated in East Asia's Japan, South Korea, China and Taiwan. China is becoming the world's largest LCD TV and other consumer electronics production base. This provides a huge market opportunity for the development of China's backlight module industry. The backlight module has a long certification time. Once it is adopted by LCD panel manufacturers, it will not be easily changed. Therefore, early intervention and firm foothold will have greater development advantages. Chinese manufacturers will be able to seize this industry shift, and LED replacement CCFL products upgrade opportunities, will be a huge development.
From the perspective of manufacturing liquid crystal display, the entire industrial chain can be divided into four parts: panel, backlight, module and terminal. Since the liquid crystal panel itself does not emit light, the display function must be realized by means of the backlight module, and thus the backlight module becomes one of the key components of the liquid crystal display device. It is mainly composed of a prism sheet, a light guide plate, a backlight, a diffusion film, a reflection sheet, and an outer frame. The backlight can be divided into two major categories: CCFL and LED. At present, small and medium-sized panels have basically adopted LED as a light source. With the light-effect, price and other obstacles being alleviated, LEDs have also been installed in large-size backlight modules in a large number, and the mainstream status in the future has been stabilized. And with the large number of LEDs being used, more and more technologies such as dynamic backlight control technology, ultra-thin technology, and heat dissipation technology are applied to the backlight module, which makes the backlight module industry gradually change the labor-intensive in the past. Features, with more and more technology added value, the role in the industry chain is becoming more and more obvious. In the CCFL era, due to the weakness of the upstream panel industry chain in China, the backlight module industry has not achieved good development. The LED era will be a favorable opportunity for the accelerated development of the Chinese backlight module industry.
Overall, the current strongest demand for the development of LCD backlight modules is probably the TV factory or LCD panel factory. Due to the increasingly fierce competition in the liquid crystal display industry in recent years, companies can only effectively solve the problem of competing with major international manufacturers for key raw materials, cost reduction, and product differentiation. To this end, several major domestic TV manufacturers such as Hisense, Skyworth, Konka, etc. have entered the LCD module assembly industry and started to develop and manufacture backlight modules. Taking Hisense as an example, in September 2007, Hisense announced that it will start production of the first LCD TV module production line in China, and plans to invest 700 million yuan in three phases to complete the construction of five module production lines, which will eventually form a production of 3 million pieces per year. ability. In addition, the search for partners is also the main mode for TV manufacturers to develop backlight module factories. For example, Taiwan's main LCD panel AU Optronics has reached cooperation agreements with Changhong, TCL and Haier respectively, and established a liquid crystal module factory.
If the TV factory integrates the LCD module from the downstream of the industrial chain, for the panel factory such as BOE and Shenzhen Tianma, it will reverse the TV factory and integrate the LCD module from the upstream of the industrial chain. Strategy to achieve the purpose of increasing the added value of the product. Taking BOE as an example, from the beginning of the introduction of the 5th generation line of liquid crystal panels in 2006, it invested in the establishment of BOE Tea Valley as its supporting module manufacturer. At the 2008 FPDChina show, BOE presented a series of LED backlight products including 32-inch LCD TVs. At present, BOE Tea Valley has started to supply LED backlight modules for notebook computers and TVs.
From the current industrial development situation, in house and vertical integration are becoming more and more popular. TV factories and panel factories also have more operational resources and economic strength. Therefore, the TV factory and the panel factory set up the LCD module factory, or the TV factory and the panel factory to produce together, and finally form an industrial cluster, which will become the mainstream business model of China's future LED backlight module industry.
Although the internalization trend of LCD modules is becoming more and more obvious, LED is an important component, and it is natural for large TV manufacturers to vertically integrate them. However, any enterprise's supply of components will not be 100% dependent on internalization. In addition to the internal procurement system, it also needs to be outsourced, which also makes the independent supplier's living space. In addition, China still has a special national situation: the inland market, the rural market is vast, the sales channels are complex, and small and medium-sized brands and even cottage products have huge room for development. These provide a broad living space for LED backlight module companies. Driven by huge market demand, it is believed that there will be a large number of companies engaged in the production of small and medium-sized LCD modules, LED production and other related industries. Taking Diguang Electronics as an example, since its establishment in 1996, it has been engaged in the research, development, production and sales of LED/CCFL backlights, LED lighting and LED displays. It has been formed to include 19", 22", 26", 32", 42" and 47" multi-size backlight module products. The serialization of products and the maximization of customer base will be the key to the success of such enterprises.
Due to the increasingly fierce competition in the backlight module industry and the large labor cost in production, Korean and Taiwanese backlight module manufacturers have invested in establishing a backlight module factory in mainland China as their main development strategy. For example, Taiwan's module factory Zhongqiang Optoelectronics established factories in Suzhou, Songjiang, Nanjing and Ningbo, Ruiyi Optoelectronics established factories in Wujiang and Nanjing, Fuxiang Industrial built factories in Wujiang, Songjiang and Xiamen, and Taesan in South Korea built factories in Wujiang. Heesung built a factory in Nanjing. In addition, there are also backlight module factories established by LCD panels and TV manufacturers, Taiwan AUO, Chi Mei, Hua Ying, etc., as well as South Korea's Samsung Electronics, LG and so on. These companies either provide support to overseas parent companies, or form strategic alliances with them, and form individual industrial clusters. In the future, as Chinese TV companies intensify their penetration in the module field, these Taiwanese companies and Korean companies will also seek some form of joint venture and alliance with them to compete for customer resources with Chinese local backlight module companies. It is an important force that cannot be ignored in the future Chinese market.
Although China's large-size backlight module production is still in its infancy, the global LCD industry is mainly concentrated in East Asia's Japan, South Korea, China and Taiwan. China is becoming the world's largest LCD TV and other consumer electronics production base. This provides a huge market opportunity for the development of China's backlight module industry. The backlight module has a long certification time. Once it is adopted by LCD panel manufacturers, it will not be easily changed. Therefore, early intervention and firm foothold will have greater development advantages. Chinese manufacturers will be able to seize this industry shift, and LED replacement CCFL products upgrade opportunities, will be a huge development.
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