Will the scarcity of IC component materials affect the price fluctuation of the whole connector industry?
Panel prices rose by more than 30%, and the scarcity of IC materials continued the price rise tide.Recently, the price of large-size LCD panels in the market continued to rise higher than expected. According to relevant news, the price of some large-size panels increased by more than 30% in the third quarter.
If the connector contains IC components ，Then the scarcity of IC component materials is bound to affect the price fluctuation of the whole connector industry 。Because whether it's domestic (Shenglan)Connectors or imported connectors need to purchase connector raw materials during production, and the cost of raw materials will rise significantly, which will also increase the cost of product production by connector manufacturers. It is inevitable that the cost of connector raw materials will rise sharply and cause fluctuations in the connector market.
According to the report released by WitsView, in late October, the price of 32 inch - 65 inch panel reached US $56-207, with a monthly increase ranging from 5% - 12%, significantly exceeding market expectations. Compared with the price bottom from May to June this year, the cumulative minimum increase in the price of large-size panels has reached 26%, while the maximum has reached 75%, with an average increase of about 50%.
Some organizations predict that the supply shortage in the global LCD TV panel market will continue in the fourth quarter. The main reason is that the scarcity of upstream IC substrates and other materials leads to limited growth in the effective supply area of large-size panels. At the same time, the head brand still maintains strong supply demand, and the imbalance between supply and demand leads to the continuous rise of panel prices.
Looking at the panel market, on the one hand, Korean manufacturers are constantly withdrawing and their production capacity is declining. On the other hand, TCL acquires Samsung's production line in Suzhou. BOE plans to acquire CLP panda's production lines in Nanjing and Chengdu. Subsequently, large manufacturers including rainbow optoelectronics are also looking for opportunities to sell panel production lines.
It can be seen that the market is mainly acquired by TCL Huaxing and BOE. Therefore, the industry concentration in the panel market is expected to increase significantly in the future. Some institutions predict that the capacity area share of BOE and TCL Huaxing will account for 57% of the market in 2021. The improvement of industry concentration will help the bargaining power of enterprises in the whole industrial chain and further highlight the scale effect.
Therefore, a source pointed out that the rising trend of global LCD panel prices will continue. Under the scarcity of IC and other materials and the strong demand for TV and it products, the rising trend of LCD panel prices is expected to continue until the end of this year.
As a leading domestic connector enterprise, jctc is one of the top 100 companies in the world. (jctc) designs and manufactures more than 500000 kinds of products and provides connector products and connection solutions for automotive new energy connectors, consumer electronic connectors, communication and enterprise connectors, aerospace connectors, defense connectors and ship connectors, medical connectors, energy and lighting industries.
