Panel tariff raised to 5% will be the first purchase of Chinese panel by foreign TV

With the advent of panel tariff adjustments on April 1, foreign TV brands will purchase LCD TV panels in China for the first time. The Ministry of Finance recently issued a notice that since April 1 this year, China's imports of 32-inch and above liquid crystal display panels without backlight modules will cancel the provisional tax rate of 3% and return to the previous 5%. At the same time, the reporter learned that not only the OEM companies, but also the foreign brands in the color TV unit have begun purchasing the panels in mainland China.

Yu Weixing, general manager of Ovid Consulting, said that with the increase in tariffs, and the increase in the yield rate of the mainland's panel and the gradual opening of production, this phenomenon is a normal choice. The products of the Chinese mainland panel makers will gradually be recognized by consumers.

Samsung takes the lead in purchasing panels in mainland China

According to South Korean media reports, Samsung Electronics will purchase TV LCD panels from Shenzhen China Star Optoelectronics (CO ST) this year. Samsung's launch of certain inch LCD TVs in major emerging markets such as China and Central and South America will carry Huaxing Optoelectronic Panels. Samsung Electronics allegedly purchased 700,000 TV panels from China Star Optoelectronics this year. Currently, the two companies are evaluating panel quality. This also means the beginning of Samsung's procurement of parts from overseas. Samsung Electronics officials said: "The purchase of LCD panels is a trade secret and it is inconvenient for external disclosure."

Samsung Electronics China stated in this regard that there is no relevant news and it is not convenient to comment.

Panelist research group Qu Zhi Consulting Director Li Yaqin told Nandu reporters that before foreign brands had PA D, smart phone and other small-size panel purchases in China, LCD television panel purchase this is the first time, however, according to monitoring analysis, The amount of procurement is not very large, mainly concentrated in 32 inches, is expected to enter the second quarter, the procurement volume will be enlarged. According to its introduction, Samsung is the first to purchase, and other brand companies are also considering purchasing matters in China, including LG, Sony, Toshiba, and Sharp. The person in charge of Sharp China stated that he had already reported the tariff adjustment to the headquarters. The headquarters has not given any instructions yet, but he stated that one highlight of Sharp’s promotion in China is the “original screen of Japan”, even if it is purchased in China, The corresponding TV does not necessarily have to be sold in China.

At present, BOE's 6th generation BOE line, Beijing 8.5th generation line, Nanjing 6D generation panda line, and Shenzhen 8.5th generation line of China Star Optoelectronics were put into production respectively. Among them, both China Panda and Shenzhen Huaxing have foreign cooperation background. The former's LCD panel sixth generation line has been built with Sharp's tenth-generation line technology, while the latter is a cross-shareholding operation between TCL and Samsung, with a 15% stake. Samsung holds. According to the information provided by AVC, according to the current product planning of the panel factory in China, there are currently 32-inch mass production of mature products, there will be a 37-inch Cel sells immediately, and then before the end of the second quarter of this year 46 inches, the latest third quarter 55 inches will come out. Therefore, with the adjustment of the tax rate, more TV OEMs will speed up their supply chain cooperation with China's mainland T FT high generation line screen factory.

Li Yaqin said that the adjustment of tariffs is conducive to the digestion of the capacity of the mainland panel makers and the increase in market share. Although this is a display board that does not contain backlight modules, it is only 2%. However, in the current low-profit era of the panel industry, the effect of this increase will also be significant.

Foreign panel companies are under pressure

According to the reporter's understanding, in purchasing panels in mainland China, prices will not be significantly different. After all, panel prices are now close to the cost line and there will not be much room for discounts. The advantages of purchasing in China are evading tariffs, localized production, and reducing logistics costs.

With the increase of tariffs, the share of domestic brands has risen, and downstream exports have also been relatively smooth. In addition to domestic color TV companies, customers have gradually spread to more and more OEM companies and foreign-owned machine brands. Zhang Yu, vice president of BOE, told Nandu reporter that at present, the impact of tariff adjustment on the source of customers cannot be seen, and it is expected that the specific effects can be seen after a period of time. According to its introduction, BOE has a number of production lines. Before long, it has paid attention to the diversification of customer sources to avoid risks, and large, medium, and small-sized products are available.

The positive effect on panel companies in mainland China also means that the panel companies in Taiwan and South Korea are bad. Li Yaqin said that for the Taiwan-Korea panel makers, global demand for terminals has not recovered, panel prices are still facing downward pressure, and consecutive quarterly losses have not improved. This year, China's LCD TV market will account for 23% of the global market. The increase in tariffs will be worse for foreign companies.

This also promoted foreign panel makers to make adjustments as soon as possible. Li Yaqin predicts that in the short term, foreign panel makers will adjust their strategies and pace in providing panels without backlight modules. This will inevitably affect the cost of the entire plant.

It is understood that the panel occupies more than 60% of the material cost of the TV machine, but in the mode of the panel without backlight module, the entire plant can be designed and manufactured through independent procurement and integration. The cost of the panel can be reduced by 10%. about. As a result, the OPE NCE LL model was spawned. Domestic TV manufacturers such as TCL, Changhong, and Hisense have all built backlight module factories, and most of them have installed backlight module factories in their own TV assembly plants. After the panel supplier makes O PE NC E LL, it is handed over to the TV factory and produced in a one-stop mode: the backlight module is assembled with the rear-end TV, and the O PE N-CELL panel is combined with the backlight module to form the panel module. With the combination of motherboards, power boards, and structural components to achieve cost reduction, the tariff rate of liquid crystal display panels without backlight modules is now adjusted to 5%, which is the same as the tax rate of module-containing products. Next, Li Yaqin analyzed that foreign companies may give up part of the PEN CELL.

Foreign investment or accelerate the pace of panel factory relocation

In addition, this tariff adjustment will also accelerate the pace of localization of foreign-funded panel makers. Under the pressure of low demand and operating losses, panel makers will all slow down or put aside their domestic investment plans. Tariff adjustments will indirectly prompt foreign companies to restart. Or speed up this plan.

Ovid Consulting analyzed that this time rather than the "upgrade" of tariffs, it was better to say that it was aimed at "restoration" of the original tariffs, and its core was embodied in the "removal of original preferential schemes." Therefore, there is still the possibility of further tariff adjustments in the latter period. Sex. With regard to the production lines of Samsung Suzhou, LGD Guangzhou, Longfei/Youda Kunshan, Ovi analyzed that both Taiwan and South Korea investors will move their existing production lines to the mainland. “The relocation of production lines can be effective as soon as possible. Utilizing their respective surplus capacity, the second is to speed up the construction cycle of the mainland production line, and it is expected that it will enter volume production status around 2013."

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