In September 1998, Bei Cai Caijing imported a first-generation LCD panel production line from DTI, a joint venture between Toshiba and IBM. However, due to the lack of core technology, the company struggled to continue its development. In 2003, Chinese companies attempted to reintroduce LCD panel production lines, but high patent fees made their products uncompetitive, leading to another failure. By 2008, China's panel industry faced a record trade deficit of 148.796 billion yuan. For many years, China's demand for LCD panels was entirely dependent on imports, with the annual import of materials ranking second only to oil, iron ore, and chips.
Looking back at the history of China’s panel industry, it has transformed from a state of "poverty and weakness" to becoming a global leader. Ten years ago, Chinese panel companies were heavily reliant on imports. However, by 2018, the industry had undergone a remarkable transformation. According to IHS, China became the world’s largest flat panel display production region, accounting for 35% of the global market. Not only in scale, but also in technology, Chinese panel companies have gradually caught up with international standards. BOE, for example, launched a 6th-generation flexible AMOLED production line in Mianyang, while Huaxing Photoelectric is building a 6th-generation flexible LTPS-AMOLED project and an 11th-generation TFT-LCD and AMOLED project. Visionox and Harmonix have also made significant progress in AMOLED and flexible OLED technologies.
Once dominated by Japanese and Korean companies, the panel industry has seen a shift. China now leads globally, and there are multiple reasons behind this success. Some argue that Japan and South Korea abandoned the low-end panel industry, focusing instead on high-end technology. However, this perspective overlooks the depth of China's efforts. Foreign companies did not simply give up; rather, they maintained control over pricing and market dynamics. In 2013, the National Development and Reform Commission investigated six major LCD manufacturers, including Samsung, LG, and AUO, for price fixing. These companies colluded to manipulate prices, showing that even basic LCD panels could generate massive profits without competition.
Japan, once a dominant force in the panel industry, made strategic missteps, particularly in betting on plasma technology. As Korean companies expanded, Japan’s influence in China weakened. Meanwhile, South Korea leveraged its scale advantage to dominate the global market. Now, China is following a similar path, learning from others before entering the market with competitive pricing. However, unlike Japan and South Korea, China's rise is not due to foreign generosity, but through its own technological advancement and strategic investment.
The panel industry is highly capital and technology-intensive, requiring both substantial funding and skilled labor. In the early 2000s, China lacked the technical foundation, but after 2008, it focused on "reintroducing and reabsorbing" technology. Companies began investing in advanced production lines, hiring top talent, and developing their own R&D capabilities. This decade marked the beginning of China’s technological leap in the panel industry.
Government support played a crucial role. Large-scale investments, such as BOE’s 46.5 billion yuan investment in a 6th-generation flexible AMOLED line in Mianyang, were only possible with strong policy backing. Land acquisition, financial support, and favorable tariffs helped create a conducive environment for growth. Additionally, China’s growing consumer demand for displays—ranging from smartphones to large TVs—provided a solid market for domestic panel producers.
China’s market is not only large but also increasingly tech-savvy. The country leads in 4K TV adoption, with a penetration rate of 58% by 2018, surpassing global averages. This indicates a strong appetite for new display technologies, which further drives innovation in the sector.
Despite its progress, China still faces challenges. Its technology lags behind the top-tier players, and its upstream supply chain remains underdeveloped. Labor costs are no longer a significant advantage, and the gap between China and advanced nations is narrowing. Future growth will depend on independent R&D and stronger industry alliances.
While China's panel industry is now a global powerhouse, it must remain vigilant. Competition is fierce, and other regions like Southeast Asia and India are emerging. However, with continued investment, innovation, and strategic positioning, China is well-positioned to maintain its leadership in the global panel industry.
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