In the display field where emerging technologies such as OLED and Micro-LED are competing, LCD (Liquid Crystal Display), as the mainstream technology route, is building up unique competitive advantages through continuous technological innovation and industrial chain upgrading. The latest industry data shows that the output value of LCD panels in the Chinese mainland will remain at a high level of approximately 480 billion yuan in 2025. The penetration rate of LCD panels in non-mobile terminal products such as display and vehicle-mounted displays still remains above 85%. This indicates that the Chinese LCD industry has completed a key transformation from "scale expansion" to "quality and efficiency".
Technological innovation is the core engine that keeps the LCD industry vibrant. Currently, oxide backplane (Oxide TFT) technology is accelerating the replacement of traditional amorphous silicon technology and achieving large-scale application in medium and large-sized high-refresh-rate products. A relevant person in charge of the Chengdu B16 factory of BOE disclosed that the yield rate of oxide LCD TV panels above 120Hz in their production has reached 92%, while the G8.6 oxide production line of TCL Star Shenzhen t9 factory has achieved full production in the third quarter of 2024, with a monthly production capacity of 90,000 glass substrates. What is more noteworthy is that the deep integration of Mini LED backlight technology with LCD panels has become a key breakthrough for the improvement of picture quality. In 2024, the shipment of Mini LED backlit LCD TVs in China reached 5.8 million units, with a year-on-year increase of 76%, and it is expected that the shipment volume will exceed 12 million units in 2026.
The enhancement of the independent control capability of the industrial chain has provided a solid foundation for technological innovation. In the past, key materials such as glass substrates and driver ICs in the LCD upstream were partially dependent on imports. However, the process of domestic substitution is now accelerating. According to a report by CaiDi Consulting, by 2025, the domestic production rate of LCD glass substrates in China had reached 35%, an increase of nearly 20 percentage points compared to 2021. Rainbow Company and Dongxu Optoelectronics have continued to make breakthroughs in the field of glass substrates, while enterprises like Miao Yi Innovation and Weir Company have been continuously increasing their self-sufficiency rate of driver ICs. The local supply system for materials such as photomask and polarizing film has also gradually been improved. In the midstream manufacturing, leading enterprises such as BOE, TCL Hua Xing, and Huikou have occupied more than 55% of the LCD production capacity globally. In 2024, the market share of the top three companies reached 67.3%, an increase of 21 percentage points compared to 2020.
The diversified expansion of application scenarios has opened up new growth spaces for the LCD industry. Although the traditional consumer electronics sector is facing pressure from saturated demand, the demand for high-end products such as 8K ultra-high-definition TVs and high-refresh-rate gaming monitors continues to rise. More importantly, the industrial and professional display sectors have become new growth poles. Among them, vehicle display has benefited from the intelligentization trend of new energy vehicles, with a compound annual growth rate expected to exceed 15%. The demand for high-reliability and customized LCD modules in medical and industrial control and other segmented markets has also significantly increased. The Pearl River Delta, Yangtze River Delta and Chengdu-Chongqing regions have formed highly concentrated industrial clusters. Cities like Hefei, Wuhan and Shenzhen have become important global panel manufacturing bases. The combined monthly production capacity of Hua Xing Optoelectronics' Shenzhen G11 and G8.6 lines exceeds 150,000 pieces, and their products cover multiple application fields.
The green and low-carbon transformation has become a consensus and action in the industry. The Ministry of Industry and Information Technology requires that the energy consumption per unit product of new panel projects be reduced by 18% by 2025, forcing enterprises to upgrade their technologies. The Wuhan T3 factory of TCL Star has obtained the international authoritative "zero-carbon factory" certification, with the energy consumption per unit product decreasing by 18% compared to 2021; the B9 factory of BOE in Hefei has achieved an ultra-high wastewater reuse rate of over 90%, and has passed the ISO14064 carbon verification certification. Many enterprises have practiced the green manufacturing concept by adopting low-emission processes such as dry etching and fluorine-free cleaning.
Looking ahead, the policy benefits will continue to be released. The national "14th Five-Year Plan" clearly lists new-type display as a strategic emerging industry. Many regions have introduced special support policies such as research and development subsidies and production line construction. Industry predictions indicate that by 2030, the LCD market size in China is expected to exceed 400 billion yuan, and the penetration rate of Mini-LED backlight LCD in high-end TVs and professional displays will exceed 30%. Experts from the China Optical and Electronic Industry Association stated that with a mature supply chain system, significant cost advantages, and continuous technological iteration capabilities, LCD still holds an irreplaceable position in the medium and large-sized display field and will achieve sustainable development through a positive competition with emerging technologies.
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