According to TrendForce analysts, the “couch potato economy” fueled by the COVID-19 pandemic has led to a steady demand for IT products, including monitors. This came as a surprise to the industry and led to a shortage of display panels that is becoming more acute as most of the production capacity is occupied by panels from other segments. The second factor provoking the shortage is the full utilization of the capacities producing semiconductor products. There is no physical opportunity for manufacturers to increase the production of control chips for panels.
As you know, Samsung Display (SDC) intends to stop production of panels this year. Meanwhile, it had a 12% market share for monitor panels last year. This makes a redistribution of market shares inevitable.
Analyzing the activities of various panel suppliers in 2021, TrendForce predicts that China Star Optoelectronics Technology (CSOT) will benefit the most from SDC’s departure. The Chinese manufacturer bought SDC’s Gen 8.5 line in Suzhou and is rapidly expanding its own production facilities. It is expected to double shipments of monitor panels within a year.
However, the market leader will remain BOE, which took this position last year. Moreover, it will strengthen its position with the acquisition of the Gen 8.5 line from CEC Panda. Last year, BOE had a 26% market share of monitor panel suppliers. It is expected that in 2021 it will increase to 31%.
The share of the second-largest company LG Display will increase from 21% to 22%. The share of the company AUO, which is the third in the ranking, will increase from 16% to 18%. But the share of the company Innolux, which is in fourth place, will decrease from 13% to 10%. The aforementioned CSOT company, which closes the top five, will be able to increase its share from 4% to 9%.
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