Tony Huang, DIGITIMES Research, Taipei [Thursday 25 October 2012]
The China government is continuing to help China's TFT LCD industry by increasing funding to various companies for development of technology, as well as by reducing or eliminating taxes on imported goods to develop the technology, according to Digitimes Research.
Reduced or eliminated taxes on components and equipment has been an important factor for local TFT LCD makers, whose competitiveness against foreign rivals has also been boosted by China increasing panel tariffs in April 2012 from 3% to 5%. The tariffs might even increase to 8%, which means that major TV, LCD monitor and notebook companies will have to procure more panels from China-based panel makers in order to keep their costs down.
Panels sized 32-inch have been some of the most procured panels to China-based makers from Taiwan- and Korea-based panel makers as a result of the tariffs, causing them to reduce production for the panels while at the same time giving China-based makers opportunities to reach yield rates of 95% for their 32-inch LCD TV panels.
It is estimated that China's three largest makers of large-size TFT LCD panels will reach an accumulative shipment quota of over 88.4 million units by the end of 2012, a 107.9% on-year increase followed by a quota of 101 million units in 2013, which would be a 14.7% on-year increase over 2012.