Dongsheng Wang: China's LCD panels are "relatively surplus"

Wang Dongsheng, chairman of BOE Technology Group Co., Ltd.'s shareholder limited company, said yesterday (17th) that in the first phase of CCTV, the general view of the employment sector that China’s LCD panels are surplus is that “surplus is only relative, and China’s development in LCD panel technology is not enough”.



Wang Dongsheng, chairman of BOE Technology Group Co., Ltd. (Image courtesy of the Internet)

Wang Dongsheng believes that, from a global perspective, LCD panels are surplus, but China's LCD panels do not enough, especially in the technical development and innovation is still lacking, so China's surplus of liquid crystal panels is relative.

The BOE and Wang Dongsheng, who have been controversial due to losses and losses, have persisted on the LCD panel front for several years in the field of flat panel displays. Objectively speaking, it is precisely the entry of BOE that has broken the long-standing relationship of the "Iron Triangle" (Japan, South Korea, and Taiwan) in the LCD panel field, and has enabled the global LCD panel industry to exhibit the "four-corner relationship" between Japan, South Korea, Taiwan, and China. ".

In the fierce competition, the survivors of the global panel industry are left with only 20 companies. Of these, BOE has entered the world's top 6 from the top 10 in the world after launching the Hefei 6th Generation Line and the Beijing 8.5th Generation Line. In China, the flat panel display industry is regarded as a "grain industry," and its development will in turn promote the development of upstream and downstream components, equipment, materials, and other supporting industries. It will also promote the development of areas such as photochemistry and physics.

The LCD panel industry is characterized by high technology, high capital, and high risk. It is not enough for companies that can afford this industry to have the courage to do so. Wang Dongsheng said that the most fundamental motivation for BOE's insistence on the LCD panel is the mission of “industry to serve the country”.

Of course, with the intervention of Chinese companies, terminal consumers have gradually used lower-priced display products. Wang Dongsheng said that in 2005, the price of a 17-inch LCD screen was more than 300 US dollars, but now only tens of US dollars. "If BOE does not do flat panel display industry, the LCD panel is only imported, and there will not be such a low price now."

In 2008, BOE suffered a loss of 800 million yuan. At the time when the financial crisis broke out, BOE still chose to go against the market and expand the Shangmao generation LCD panel line. Wang Dongsheng said, “If BOE does not seize the opportunity to do it, it will have a bigger gap with its competitors in the later period.”

Wang Dongsheng believes that BOE is a latecomer in the field of LCD panels, but can not take the old road of others, it is necessary to develop and innovate, so in the BOE to do technical upgrading of ownership. Even though BOE is still losing money, Wang Dongsheng believes that BOE's patent volume and gross profit margin are among the top three in the world.

“The flat-panel display industry must follow the path of global competition. BOE and its competitors maintain a co-opetition relationship.” Wang Dongsheng said that in the past development, BOE suffered a lot of hardship, but he thinks this is a blessing to Heaven. “ The rise from hardship can only lead to hardships. The hardships make my life more exciting and allow me to experience more life experiences." Wang Dongsheng said.