TCL CSOT Unveils World's First Vertical Domain AI Model for Semiconductor Display
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On December 7, at the 2023 TCL CSOT Global Display Ecosystem Conference, TCL CSOT launched the world's first vertical domain AI model for semiconductor display, X-Intelligence. Developed in collaboration with Zhipu AI and the National Innovation Center for Display Technology, this model exceeds GPT-4 in capability and enables private deployment. Simultaneously, TCL CSOT also unveiled four new display products.
According to the latest Q2 2023 financial reports, most display panel manufacturers saw varying degrees of revenue growth quarter-over-quarter, except for a few. AU Optronics grew by 24%, Innolux by 21%, while TCL CSOT and BOE increased by 16% and 11%, respectively. The display panel industry is entering a new phase of recovery.
Data shows that since February 2023, panel prices have remained relatively stable. Large-sized LCD panels experienced the fastest price growth, while prices for mid-to-small-sized screens like monitors and laptops remained steady. The trend of panel prices rebounding from declines is becoming increasingly evident.
In terms of H1 shipment volumes, 75-inch and larger panels were the primary growth drivers. 75-inch panel shipments reached 6 million units, a significant 24.5% YoY increase, making it the fastest-growing size in H1. Its market share rose by 1.4 percentage points to 5.2%.
The second-highest growth was seen in panels larger than 75 inches, with H1 shipments of approximately 2.3 million units, up 18.6% YoY. Their market share reached 2%, a 0.5 percentage point increase from the previous year.
In contrast, 32-inch panels, which had the highest shipment volume among all sizes, saw a sharp decline. H1 shipments totaled around 28 million units, down 29.4% YoY, with market share dropping 7.1 percentage points to 24.1%.
October Panel Prices Likely to Remain Flat
Prices for major panel sizes (32"-85") in October are expected to largely follow September trends. However, as supply and demand further shift toward a buyer's market, 85" prices will stop rising. Most sizes between 43" and 85" will maintain high-level stability. The outlook for 32" demand is particularly pessimistic, with ample channel inventory and loose supply. Prices are projected to drop by $1 in October compared to September, settling at $37, potentially starting with price cuts in some secondary markets.
Display Panel Industry Development Analysis
As a key supported industry in China, the national and local governments have issued multiple policies to promote the development of the display panel sector. With government funding, major manufacturers have actively expanded factory scales and sales through mergers and acquisitions, achieving market expansion.
In the first half of the year, global demand for display terminals remained sluggish but showed quarterly improvements. According to Omdia data, TV panel production gradually recovered during this period, with manufacturers adjusting size structures—significantly reducing small-size supply while increasing large-size capacity.
As Chinese panel makers continue to increase their market share in TV panels, the production center has shifted to China, driving the development of upstream domestic material industries. Chinese companies are making progress in areas such as glass substrates, TFT-LCD mixed crystal materials, and display driver chips.
Currently, Samsung and LG Display are increasing investments in OLED production lines to expand capacity and secure orders from Apple. However, the gap in OLED display market share between Chinese panel makers and global leaders is narrowing. Chinese manufacturers' market share grew from around 3% in 2019 to 30% by Q3 2022.
BOE surpassed LG Display to become the world's second-largest with a 13% market share in 2022. During its April earnings call, BOE announced considerations for building 8th-generation or higher IT OLED production lines, indicating further potential growth in OLED market share for Chinese manufacturers.
Leading domestic display panel companies have significantly improved their market presence. The top four Chinese panel makers—BOE, TCL CSOT, HKC, and IRICO—now account for over 67% of global TV panel shipments in 2023, up approximately 19% from 2019.
Amid industry-wide adjustments, manufacturers are exploring new development strategies for the next cycle. Samsung and LG Display have decided to gradually exit the LCD industry, reallocating resources to OLED display technologies. LG Display plans to divest its Guangzhou factory, while Samsung Display ceased TFT-LCD panel production in May.
The display panel industry chain consists of upstream components (including process equipment, core materials, and key parts), midstream panel and module production, and downstream end products (such as smartphones, VR/AR devices, wearables, automotive displays, tablets/computers, and laser projectors).
Current display panels are mainly categorized into LCD, OLED, and mini LED, with future technological trends including QNED and Micro LED. Depending on the panel type, the overall composition and materials vary. For mainstream LCD panels, the structure primarily includes polarizers, glass substrates, liquid crystal materials, color filters, and optical films.
The display panel industry report conducts a detailed analysis of China's current industry development status, competitive landscape, and market supply-demand dynamics. It examines the opportunities and challenges facing the industry from multiple environmental perspectives including policy, economic, social, and technological aspects. The report also focuses on analyzing the operational status and development patterns of key enterprises, while providing professional forecasts about the industry's development trends in the coming years.