Shenzhen Enrich Electronics Co.,Ltd

Recently, it has been reported that TCL Huaxing plans to build a 8.5-generation LCD production line in Guangzhou, which is not actually an 8.5-generation line. Jiwei reporter just got the news that TCL Huaxing plans to build an 8.6-generation IPS LCD production line in Guangzhou with a monthly production capacity of 204K and a total investment of more than 30 billion yuan.

Supply chain sources revealed that in addition to a-Si LCD production capacity, TCL Huaxing Guangzhou’s 8.6-generation IPS LCD production line will also plan some IGZO LCD production capacity. It is expected to be piling in March next year and be completed and put into production in September 2022.

It is understood that after the acquisition of Samsung’s 8.5-generation line in Suzhou, TCL Huaxing already has 3 8.5-generation LCD panel production lines, 2 6-generation lines and 2 11-generation LCD panel production lines, mainly producing VA LCD or AMOLED, which can cope with the TV LCD panel market. However, IT giants such as Lenovo, Dell and HP tend to use IPS LCD panels.

In order to expand the IT application market, TCL Huaxing must introduce IPS LCD panel production lines. It is understood that TCL Huaxing wanted to make up for some of the shortcomings of IPS LCD panels through the acquisition of CLP Panda, because Nanjing CLP Panda’s 8.5-generation line has a monthly production capacity of 30K IPS LCD, but it was eventually acquired by BOE. TCL Huaxing even tried to acquire LG Display's 8.5-generation IPS LCD production line in Guangzhou, but LGD currently has no intention to sell. After the two major acquisitions failed, TCL Huaxing considered building its own IPS LCD production line.

Jiwei Consulting analysts pointed out that if TCL Huaxing Guangzhou’s 8.6-generation IPS LCD production line is completed and put into production, it will form a positive competition with LGD and BOE’s IT panel business, and will place orders for AUO, Innolux’s 5.5-generation line or 6-generation line. This poses a threat, because the 8.6-generation IPS LCD production line is more efficient than the 5.5-generation line and the 6-generation line, with more slices.