Angobo, President of Merck China: The integration of display and AI will greatly promote human progress [attach the market development of new display industry]

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Recently, the 2023 World Display Industry Conference hosted by the People's Government of Sichuan Province and the Ministry of Industry and Information Technology was officially opened in Chengdu, Sichuan Province. At the meeting, Angobo, president of Merck China, said that, The integration of display and AI will greatly promote human progress This is not only the progress of technology, but also the improvement of human experience, making the interaction between human and machine more intuitive, immersive and meaningful. The combination of the two will further empower the display industry, so that display enterprises can better serve humanity with technology in the future.

——Development scale of national new display industry

(Data map)

According to the data released by the World Display Industry Conference co sponsored by the Ministry of Industry and Information Technology and the People's Government of Anhui Province, the revenue of the new display industry in mainland China will increase year by year from 2017 to 2020. By the end of 2020, 35 panel production lines of 6 generations and above have been built in mainland China, with a total investment of 1.24 trillion yuan and an annual production capacity of 222 million square meters, The annual revenue of the new display industry reached 446 billion yuan, up 19.7% year on year. It is preliminarily estimated that the revenue of the new display industry in mainland China will exceed 520 billion yuan in 2021.

——Value chain distribution of new display industry

The upstream of the new display industry chain mainly includes backlight module, polarizer, color filter, glass substrate and other raw materials; Drive IC, circuit board and other parts; Packaging equipment, testing equipment and other equipment; The midstream mainly includes LCD OLED、Mini LED、Micro LED、 Manufacturing of display panels such as quantum dot display and laser display; Downstream are consumer electronics and other application scenarios, in which consumer electronics mainly include mobile phones, computers, televisions, cameras, wearables, etc. According to the gross profit rate of each link of the new display industry chain, at present, the gross profit rate of upstream raw materials and parts such as driver IC, electronic gas and detection equipment is high, of which the gross profit rate of driver IC is as high as 45% - 70%, while the gross profit rate of raw materials and parts such as packaging equipment, circuit boards is low.

——Analysis on Main Revenue of New Display Industry in Chengdu

In recent years, with the overall improvement of the demand for remote conference, remote education and home entertainment, the new display industry as a whole has shown an upward trend against the trend, and Chengdu's new display industry has benefited simultaneously. According to the data of Chengdu Municipal Bureau of Economy and Information Technology, the main business income of Chengdu's new display industry has maintained a good growth trend of about 30% in recent years. In 2021, the main business income of the city's new display industry will reach 60.269 billion yuan, up 39% year on year, becoming one of the pillar industries with the most development potential in Chengdu.

——Development prospect of new display industry in Chengdu

In order to further complete the industrial chain, integrate the supply chain, enhance the value chain, and build a national first-class new display industry ecosystem, in February 2022, the Several Policies of Chengdu to Further Promote the High Quality Development of the New Display Industry (Draft for Comments) will be open to the public for opinions and suggestions. The Draft proposes that the development goal of the new display industry in the future is to build Chengdu into a globally well-known, domestically first-class and distinctive industrial R&D, manufacturing and application base, and strive to exceed 100 billion yuan in revenue for enterprises above the designated size. In addition, the 14th Five Year Digital Economy Development Plan of Chengdu issued in April 2022 proposed that new displays should be the focus of the development of Chengdu's digital economy core industry, and the key goal is to develop the manufacturing of AMOLED flexible panels and TFT-LCD ultra-high definition large size panels.

Zhang Yunming, member of the Party Leadership Group and vice minister of the Ministry of Industry and Information Technology, said, The next step will promote the new display industry to expand downstream applications We will supply innovative products to meet the needs of 5G communications, artificial intelligence, the Internet of Things, new energy vehicles, the universe and other emerging fields.

Prospective Economist APP Information Group

For more research and analysis of this industry, please refer to the Report on In depth Research and Investment Strategic Planning Analysis of China's New Display Industry issued by the Prospective Industry Research Institute.

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