Panel makers entering the downstream want to move closer to the Samsung model

Display companies in the upper reaches of the industry chain are advancing downstream, wanting to extend from cold screens to live terminal brands. At the 5th China Electronics Information Expo (CITE), which was opened on April 9th, BOE, Tianma, Visionox and many other panel companies demonstrated the smart life solutions beyond the concept of “screen”. Consumer-oriented end products.

Taking the BOE as an example, after the company launched its own TV brand, it entered the medical direction. In addition to BOE, after the acquisition of Sharp by Foxconn, the intentions of the panel and the terminal are more obvious. Right now, more and more companies with screen technology have begun to move closer to Samsung's industrial model.


Into the downstream

Judging from the production line, BOE currently has 11 semiconductor display production lines, of which 3 are under construction. They are Hefei's first 10.5-generation TFT-LCD production line, Chengdu's sixth-generation flexible AMOLED production line, and Mianyang's sixth-generation flexible AMOLED production line. Among the three newly planned production lines, one is the highest generation line in the world, which focuses on large-size, ultra-high-definition; two AMOLED lines aiming at the new display technology in advance.

In terms of panel displays, BOE's investment in more than a decade has produced economies of scale, both in terms of production lines and production. Of course, due to the cyclical fluctuations of the panel, the company has experienced ups and downs in earnings. According to the financial report, BOE’s profit fell in the first half of 2016, among which, panel prices were low and exchange rate changes were the main reasons.

Today, in addition to the “one leg” of the panel, BOE has continuously strengthened its multi-domain smart material business downstream from the industrial chain. In fact, BOE initiated a strategic transformation of the DSH in 2014, from the original Display Device Business to the Smart System Business and Health Service Business.

Zhang Yu, senior vice president of BOE: "Now the display business accounts for about 80%. In the next 5-10 years, we hope D, S, and H each account for one-third of the business."

Based on the screen technology, BOE launched the Alta series of large-size TVs with its own brand. It released a BOE iGallery for home and commercial products last year. It can enjoy many works of art on a 4K screen. This year iGallery has more specifications, Zhang Yu introduced: "The future iGallery will use 8K high-definition screen, the current sales volume of about 1000 per month."

Beyond the screen, BOE launched a new compact medical product called the Non-invasive Multiparameter Detector (MTX) to measure physiological parameters such as blood and blood gases, and to record personal big data with APP. Products will be available around May. In addition, BOE has also deployed the business of two hospitals, namely Beijing Mingde Hospital and Hefei BOE Digital Hospital which was built in 2016. Among them, Digital Hospital and Dignity Health in the United States are cooperating.

Outside the screens of televisions, computers, mobile phones, and vehicles, medical care is becoming a new area for panel companies. Tianma Microelectronics and Foxconn also have medical layouts. On the one hand, they provide high-definition screens for remote treatment, and on the other hand, provide physical indicators for individuals. Take Foxconn as an example, it has already tried to establish a personal health cloud in its employees and families, and has conducted research on cancer in Taiwan’s universities.

Samsung mode

From the huge investment in semiconductor display industry to the promotion of industrial chain integration, the gap between Chinese companies and Korean and Japanese companies is gradually decreasing. In terms of LCD panels, domestic companies reached a peak in output last year, and they want to take advantage of the emerging OLED and Quantum Dot technologies for cornering overtaking. At the same time, companies with screen technology are gradually expanding into downstream terminals.

In the face of these two very strong rivals Samsung and LG, many companies are expanding in a Samsung-like integration model. The most obvious is Foxconn. From its acquisition of Sharp, one can see its ambitions for its own brand. From the third quarter of 2016, Sharp's panel plant operating efficiency has improved and revenues have gradually recovered. In the fourth quarter of last year, it achieved a turnaround in the fourth quarter.

Li Yaqin: "Foxconn is indeed learning the Samsung model and taking the road of display and terminal integration. BOE is diversified. In the three major segments of D, S, and H, the smart system business and health service business are all non-panel business, wisdom among them. The system is a model for learning Samsung. Health care is a diversified business."

"We are taking a differentiated path. When the outside world mentions BOE, it is not just the screen company, but the provider of Internet technology and services. Therefore, the number of screens displayed this time is relatively small," said Zhang Yu, "the company's development. To a certain scale, it requires diversified development, and it is difficult to permanently support a single business."

It has to be said that screen companies face many challenges in their downstream coverage. One of them is to face competition from other terminal brands. For color TV brands, the domestic market has already entered the stock market. Whether it is Sharp or its own brand of BOE, further competition for market share is not easy. It is understood that BOE is still dominated by OEMs. Second, To C’s consumer market is different from the To B market. Self-operated and online sales are still in the exploratory stage. Third, the screen companies manufacture terminal products. It must also be tested by the market and products must be differentiated.

Zhang Yu said: "The screen is a port. On the one hand, we provide screen technology. On the other hand, we provide screen-based services and consumer-oriented products. In the future, it is possible that H (Health Services) will account for 50% of all businesses. The share of this is also the key direction for our industry chain."

Smart TV/box information can focus on smart TV information network sofa butler (http://), China's influential TV box and smart TV website, providing information, communication, TV boxes, smart TVs, smart TV software, etc. Answering questions.

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