CCID Consulting: "White Paper on China's Top Ten New Display Parks in 2020"

As an important port for intelligent interaction, new displays have become an important support and foundation for emerging industries such as ultra-high-definition video, the Internet of Things, and virtual reality. They are also strategic emerging industries that countries and regions around the world have been competing to develop in recent years. In recent years, the scale of China's new display industry has increased rapidly. TFT-LCD production capacity ranks first in the world. The scale of the OLED industry continues to expand. There are already more than ten G6 generation AMOLED production lines under construction or planning. China is becoming an important pole in the global new display industry. It has initially formed a new display industry pattern represented by the Beijing-Tianjin-Hebei, Yangtze River Delta, southeast coastal areas, Chengdu, Chongqing and Hubei regions, and has become one of the leading industrial directions in the region in more than 20 national or provincial (municipal, district) industrial parks.

Recently, CCID Consulting released the "White Paper on China's Top Ten New Display Parks in 2020". The research objects mainly include various high-tech industrial development zones, economic and technological development zones, industrial parks, characteristic industrial zones, high-tech industrial new cities, new science and technology cities, pioneer demonstration zones, etc. The white paper is divided into the following 5 chapters.

01. Evolution and strategic position of the new display industry

(1) Industry evolution—display development history

(2) Industry evolution—TFT LCD production capacity transfer

(3) Strategic position - an important support for the new generation of information technology industry

According to the National Bureau of Statistics' "Strategic Emerging Industries Classification (2018)" document, my country's strategic emerging industries are mainly divided into new generation information technology, high-end equipment manufacturing, new materials, biology, new energy vehicles, new energy, energy conservation and environmental protection, digital creativity and other industries.

The new generation of information technology mainly includes the next generation of information network technology, electronic core industries, emerging software and new information technology services, Internet and cloud computing, big data services, artificial intelligence and other industrial directions. New displays are a major component of the core electronic industries and have become an important component of the new generation of information technology.

02. Development environment and current situation of China's new display industry

(1) Development environment of China's new display industry - market environment

Market status

In 2019, with the steady increase in panel shipments in the domestic market and the further increase in the penetration rate of OLED panels, China's flat panel display market size is 174.07 billion yuan.

LCD products still occupy the major share of China's flat panel display market in 2019, with the market size reaching 135.02 billion yuan. As the product penetration rate in the smartphone field continues to increase, the market size of OLED products has grown rapidly at an average annual compound growth rate of nearly 30% in the past three years.

Market Prediction

① "5G+8K" is gradually promoted, and the large-size ultra-high-definition market welcomes opportunities;

② The consumption upgrade process is accelerating, and display technology is constantly iteratively updated;

③ The Internet of Things era is rapidly opening, and new scenarios and new applications are constantly emerging.

(2) China's new display industry development environment - policy environment

As one of the breakthrough directions of the new generation of information technology, the development of the new display industry has received strong support from the country during the "Twelfth Five-Year Plan" and "Thirteenth Five-Year Plan" periods.

The State Council's "Twelfth Five-Year Plan for the Development of National Strategic Emerging Industries" and the "Thirteenth Five-Year Plan for the Development of National Strategic Emerging Industries" respectively support the new generation of displays as one of the core basic industries of electronics and information technology. National ministries and commissions such as the National Development and Reform Commission, the Ministry of Finance, the Ministry of Science and Technology, and the Ministry of Industry and Information Technology have also successively issued special plans and support policies to strongly support the development of new displays.

New display industry chain

China's new display production capacity scale

In recent years, with the mass production of multiple G8.5/G8.6 and G10.5 generation lines, my country's LCD production capacity has maintained high growth. In 2019, the total LCD production capacity reached 1,134.81 billion square meters, ranking first in the world.

In the OLED field, with the accelerated release of G6 generation production line capacity, my country's OLED production capacity accounts for more than 10% of the world. It is expected that the production capacity will exceed 10 million square meters in 2022, accounting for nearly 30% of the world's production capacity.

03. A brief description of the development of China's new display industrial parks

(1) Regional pattern of China's new display industry

Distribution of China's new display industry

After more than ten years of development and construction, China's new display industry has initially formed an industrial distribution pattern in the Beijing-Tianjin-Hebei region, the Yangtze River Delta region, the southeastern coastal region and the Chengdu-Chongqing-E region.

The total investment in TFT-LCD and AMOLED panel production lines in the four major regions exceeds 1.2 trillion yuan. There are 5 G10.5 generation TFT-LCD production lines built or under construction, 13 G8.5/8.6 TFT LCD production lines, and 11 G6 generation AMOLED production lines. They are the concentration of domestic panel production capacity.

(2) China’s new display park development model

With the evolution and development of industrial parks, industrial park development models such as local government (management committee) operation, enterprise-led, and real estate developer-led industrial park development models have gradually formed. At present, domestic new display industrial parks are mainly operated by the government.

(3) China’s new display park industrial development model

On the development path of the new display industry, the park has actively contacted leading companies in the panel industry and supported key projects. The development of panels has been jointed upward, and the layout of the entire industry chain in the display field has significant effects, forming a complete industry chain and industrial cluster covering upstream equipment, materials, devices, midstream panels, modules and downstream intelligent terminals. It has successfully implemented the cluster development model of "leading companies-major projects-industrial chain-industrial agglomeration-industrial base".

04. Top Ten New Display Parks in 2020

(1) Top Ten New Display Parks in 2020

(2) Ten Overview of the overall development of large industrial parks

From the perspective of province (city, district) distribution, two parks in Guangdong Province and Fujian Province are shortlisted for the top ten parks, and one park in Beijing, Shanghai, Anhui Province, Hubei Province, Jiangsu Province, and Sichuan Province is shortlisted.

In recent years, a number of TFT-LCD high-generation lines and AMOLED flexible production lines have been settled in the top ten parks, driving industrial investment to continue to rise. As of 2020Q1, the top ten parks accounted for 55.6% of the total investment in domestic panel production lines.

The top ten parks currently have a total of 22 TFT-LCD production lines in mass production or under construction (planned). In terms of high-generation lines, 4 G10.5 generation lines are distributed in the top ten parks, and 6 mass-produced G8.5/8.6 production lines are located in the top ten parks. Currently, the top ten parks account for more than 90% of the production capacity.

There are a total of 18 AMOLED production lines in domestic mass production or under construction (planned), of which the top ten parks have as many as 11. This directly leads to the top ten parks’ domestic AMOLED production capacity accounting for nearly 85%, reaching 1.884 million square meters.

05. Prospects and Suggestions for the Development of New Display Parks

(1) Prospects for the Development of New Display Parks

① The degree of regional differentiation in park development is increasing;

② The innovation center has become a key construction project in the park;

③ The integration of industry and city promotes the diversification of park functions.

(2) Suggestions for the development of new display parks

① Explore differentiated development routes and accurately attract investment;

② Improve the guarantee of industrial development factors and enrich investment and financing methods;

③ Accelerate the construction of professional services in the park and actively provide industrial support.