Shulou(Shulou.com)11/24 Report--

CTOnews.com, February 17, DSCC Research again cut equipment capital expenditure in the latest Quarterly Display Capex and Equipment Market Share Report update, a decline attributed to weak end-market conditions that led panel manufacturers to delay increasing production capacity. Demand is not responding to record low prices, and the recession is worried about the outlook for future demand, which means suppliers of dedicated display devices are largely in a state of survival in 2023. Fortunately, the market for semiconductor equipment remains strong.

CTOnews.com has learned that major spending on display equipment in 2023 is expected to fall 68 per cent from $12 billion in 2022 (currently about 82.32 billion yuan). OLED equipment expenditure is cut by 11%. LCD expenditure is reduced by 24%, because the current production capacity has not been fully utilized. This means that LCD spending in 2023 will fall 75 per cent year on year and 64 per cent year on year. Some critical deliveries in the fourth quarter of 2023 may be further delayed to the first quarter of 2024 or later, and while larger critical equipment companies may not be affected, most equipment companies have been notified of delays.

Judging from the current forecast, DSCC did not reduce the overall key display equipment forecast for 2020-2026, still at $63.5 billion (currently about 435.61 billion yuan). It is mainly reported that some spending has been postponed from 2023 to 2024 or even 2025, and that 2025 has increased by 26% compared with previous forecasts.

-see that the market is expected to rebound in 2024, growing by 98% to reach US $7.6 billion (currently about 52.136 billion yuan), of which OLED grew by 102% to reach US $4.3 billion (currently about RMB 29.498 billion), and LCD grew by 111% to reach US $3.2 billion (currently about RMB 21.952 billion). Most of the OLED investment is aimed at the IT market, and OLED has great potential to gradually replace LCD in the future, leading to the demand for more capacity. While the 98 per cent increase in capital expenditure on equipment is attractive, it will still be the smallest since 2015.

Samsung shows that construction has begun on the A6, which may eventually accommodate an additional IT OLED production line and / or a new QD-OLED production line.

Discussions about building one or two new factories in India also continue to heat up.

-began to subdivide the MicroLED TFT backplane investment, and now we can see that both LG Display and BOE have orders for the MicroLED TFT backplane production line.

-tracking of two new market segments has also been added. After solid-state laser annealing, Philoptics won the order for Samsung display. As well as the new IJP application, the demand of multi-lens array promotes the development of IJP market.

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