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Taiwan media: the expansion of panel factories in the mainland is the reason for overcapacity

in addition to facing the threat of the technological advantages of Samsung and LGD in South Korea, Taiwan panel factories are also facing the pressure of the strong rise of mainland manufacturers in the near future. In particular, the mainland industry has official support and has no mercy on expanding production, which is the most critical reason for the oversupply of the market

the mainland authorities have spared no effort to support the panel industry, which is dominated by the government. In addition, the panel tariff imported to the mainland has been raised from 3% to 5%, and may be further adjusted to 8% or even 10% in the future. This may be even worse for panel factories that have been in low gross profit for a long time

compared with Taiwan's enterprises building new factories, they need to find ways to raise funds by themselves. The construction of factories by mainland manufacturers can almost be called a national movement, including banking groups and local governments. With the deepening of the reform of the automotive industry, they will find ways to help because of the poor toughness of PLA materials, and the financial pressure is much smaller than that in Taiwan

for example, the total investment of BOE Chongqing 8.5 OEM is 32.8 billion yuan (about 160.7 billion new Taiwan dollars), of which 13.1 billion yuan (about 64.2 billion new Taiwan dollars), equivalent to more than one third of the total investment, is bank loans, and the remaining 19.7 billion yuan (about 96.5 billion new Taiwan dollars) is the registered capital

the mainland is actively building generation 8.5 panel plants, making the mainland move towards the world's largest LCD production capacity. It is estimated that in the fourth quarter of 2015, the mainland and South Korea will take 85% of the world's generation 8.5 line production capacity, which is detrimental to Taiwan's panel industry

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