Shenzhen Enrich Electronics Co.,Ltd

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Company News >> How does LCD panel prevent overcapacity? 13th,July,2017
                                               IPO Advisors Prospects Investment advisers believe that the existence of excess capacity in the domestic market is mainly a government-driven investment model derivatives. To steel, electrolytic aluminum, photovoltaic and other industries, for example, the problem of overcapacity from the root of the formation of the government is too much involved in microeconomic activities, thus distorting the price signal, but also distorted the enterprise supply curve and cost structure The On the one hand the local government in the capital, site, tax subsidies in a variety of policies to create the industrial environment, easy to make enterprises have to go on the big, stronger and stronger impulse; the other hand, the government's strong involvement, so that business investment And the creditors too much believe that after the blind expansion of the government's pocket.
In order to withstand the survival crisis caused by price fluctuations, LCD panel manufacturers continue to improve the production capacity of existing production lines, on the other hand continue to invest heavily in the production line generation, with a view to the emerging high-end market to obtain excess profits. As the investment in high-generation LCD panel production line will greatly promote the development of the local economy to support the development of LCD panel manufacturers in terms of both local governments can stimulate the rapid development of local economy and industry, but also quickly improve performance. However, once the local government-led investment projects from the law of the market, can not set foot on the rhythm of the industry cycle, may make domestic manufacturers repeat the mistakes of excess capacity into the trap of expansion.
In addition, from the global flat panel display industry, OLED display technology for the emergence of China's display industry provides a rare opportunity for development. As the TFT-LCD and AMOLED between the technical relevance and resource sharing up to 70%, with the future of foreign manufacturers to further open in the field of flat panel display, to relax restrictions on China's production lines and technology, the domestic LCD panel should seize the industry Transfer of the opportunity to optimize their own industrial structure, and vigorously introduce high-generation production line, through the general transformation of backward production line to meet the future development and production needs of AMOLED products, reasonable adjustment of production capacity and supply and demand, improve profitability to enter their own virtuous circle, Promote the healthy development of the industry.

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