By the end of this year, Guangdong will apply for the launch of a 4K test channel, marking another significant leap forward in technological innovation following digitization and high-definition. This move is expected to create a massive market space, with projections indicating that by 2020, the application of 4K TV networks will contribute over 600 billion yuan to the province's related industries.
The development of the ultra-high-definition television industry in Guangdong is well-established, boasting not only a cluster of leading enterprises but also a comprehensive industrial chain. Currently, the province is seizing the opportunity presented by 4K TV to launch the "New Digital Family Action."
As the 4K era approaches, are you prepared? Starting today, we are launching the "4K Industry Chain Survey" to explore the advantages and future prospects of 4K development in our province, focusing on terminal manufacturing, content creation, and transmission channels. Stay tuned.
The world is becoming increasingly clearer thanks to advancements in "ultra-high-definition" devices. The global 4K ultra-high-definition market is thriving, with estimates suggesting that by 2025, the global 4K TV market could reach $388.9 billion. China has emerged as the world's largest market for 4K TV products, both in terms of consumption and production, manufacturing more than half of the world's 4K TVs.
The "Thirteenth Five-Year Plan for National Strategic Emerging Industries Development," issued last year by the State Council, emphasized the importance of developing core information technology industries. It highlighted the need to achieve breakthroughs in domestic technologies like chips for new applications and ultra-high-definition (4K/8K) quantum dot LCD technology.
TCL Group, headquartered in Guangdong, stands at the forefront of 4K industry development, thanks to its advanced panel production projects. The recently released "4K TV Network and Industrial Development Implementation Plan (2017-2020)" outlines strategies for fostering a robust supply chain, contributing significantly to China's 4K advancement.
Shenzhen's Guangming New Area is home to the TCL Huaxing Optoelectronics G11 project, which represents a total investment exceeding 50 billion yuan. Construction is progressing rapidly, making it the largest industrial investment project since Shenzhen's inception. This project focuses on the research and development of high-end 4K panels, with construction expected to be completed by December 2017, and mass production starting in early 2019.
When users enjoy 4K products, the display screen is the most noticeable component. Panel technology determines the resolution and quality of these screens, making it a critical aspect of 4K development. Global market research shows that in 2016, global 4K TV panel sales reached 63.74 million units, representing a year-on-year growth rate of 70%, with a market share of 24.7%.
While LG and Samsung remain leaders in high-end panel development, China is now striving to lead in innovation. Companies like China Star Optoelectronics and BOE achieved shipments of 4.68 million and 4.1 million 4K TV panels in 2016, capturing 7.4% and 6.4% of the global market share, respectively.
Huawei HiSilicon's hi3751V600 and hi3751V510 chips are powering many brands' 4K TVs, including Sharp, Hisense, and Konka. Ten years ago, this would have been unimaginable.
Domestic chip manufacturers, led by Huawei HiSilicon and Chinasex Microelectronics, have made significant strides. Huawei HiSilicon's video encoding and decoding chip systems cover a wide range of resolutions, from D1 to 4K, with frame rates up to 60fps. Domestic market share has surged to around 60%, compared to just 1% a decade ago, while foreign chip dominance has dropped to 35%.
This transformation has made 4K TVs more accessible to consumers. Prices have dropped dramatically, with some models now available for under 10,000 yuan. In 2016, domestic brands accounted for 92.8% of China's 4K TV sales, which made up 48% of total TV sales in the domestic market.
Looking ahead, the global 4K TV market is expected to grow, with China maintaining its leadership position. By 2020, it is projected that 4K TV sales in China will account for over 60% of total sales, significantly surpassing North America and Western Europe, the second and third largest markets.
With leading TV manufacturers like TCL, Skyworth, and Konka based in Guangdong, the province accounts for 51% of national color TV production. Skyworth plans to increase its 4K smart TV sales in the domestic market to 55% by the 2017/18 financial year.
In summary, domestic panel and chip innovations have driven down costs, making 4K TVs more accessible. Key achievements include:
- Huaxing Optoelectronics and BOE shipped 4.68 million and 4.1 million 4K TV panels in 2016, capturing 7.4% and 6.4% of the global market.
- Domestic 4K imaging chip market share has risen to 60%, compared to 1% a decade ago.
- Huawei HiSilicon holds over 50% of the domestic market, with its 4K smart TV core chip entering the supply chains of six domestic color TV manufacturers.
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