As a peripheral industry of semiconductors, the display industry has been a focus of attention in recent years. For example, in the context of the global semiconductor shortage and the supply-demand imbalance, LCD panels have shown a roller-coaster-like price trend; miniLED is gradually rising, steadily lowering costs; and OLED's market share continues to increase...Recently, DSCC (Display Supply Chain) published a report on the top 10 predictions for the display industry in 2022. This article provides a simple summary and review of the white paper, combining other available information. It aims to help those interested in the display industry. For more detailed industry specifics, it is recommended to download the original DSCC report.LCD TV Panel Prices Continue to Drop, but Won't Reach Historic LowsThis trend was discussed in a recent article. Prices for LCD TV panels began to rise in May 2020 and continued for over a year. However, prices began to plummet in June of the previous year, marking the fastest price increase and decrease in the history of the FPD (flat panel display) sector. The earlier price increases were mainly due to supply-demand imbalances, especially driven by the COVID-19 pandemic that sparked demand. By December of last year, LCD TV panel prices had dropped 46% from their peak in June. DSCC predicts that while prices will continue to fall in the first months of 2022, they will not fall to their historical lows.Samsung and LG, which originally planned to exit the LCD business earlier and shut down their LCD factories in South Korea, delayed these plans due to the price surge. However, with recent price drops, the plan to exit the LCD market will likely be reconsidered, stabilizing LCD TV panel prices in the short term.Over 10 Million OLED TV Panels to Ship in 2022This is an obvious trend. In 2016, OLED TV panel shipments were less than 1 million units, accounting for around 0.4% of the entire TV market. Since then, shipments have grown at double-digit rates each year, with LG continuing to expand production. Samsung will also join the OLED TV panel market with QD-OLED technology, and DSCC expects OLED TV panel shipments to exceed 10 million units in 2022, occupying around 4% of the TV market.QD-OLED Sales Will Begin, But Annual Sales Won't Exceed 1 Million UnitsSamsung began large-scale production of QD-OLED TVs in Q4 of 2021, with both Sony and Samsung's consumer electronics businesses expected to sell these products in 2022. However, Samsung faces technical challenges in manufacturing these panels, such as the Gen 8.5 oxide TFT backplane and complex OLED stacking. Due to these challenges, QD-OLED TVs may have a higher product positioning compared to white OLED but may not have sufficient picture quality advantages to differentiate them significantly.US-China Trade Tensions Continue to Affect the Display IndustryThe ongoing trade tensions, including the US imposing import tariffs on Chinese goods, have had a substantial impact on the display industry. Increased tariffs have made Chinese-manufactured TVs less competitive, prompting manufacturers to shift production to Mexico, Vietnam, and Thailand. In 2018, China accounted for 55% of TV imports to the US, but by Q3 2021, this had dropped to 16%. This trend is expected to extend to other products such as mobile phones and IT devices, adding significant uncertainty to the display industry.Apple to Launch AR/VR DevicesRumors suggest that Apple's AR/VR devices will be released in the second half of this year. The company has prepared various components, including LiDAR sensors and spatial audio. DSCC predicts that Apple's headsets will feature an innovative display configuration with three display modules: two Micro OLED screens and one AMOLED panel. Sony Semiconductor Solutions is expected to be the supplier for the Micro OLED displays.Commercially Viable Efficient Blue OLED Emitters Still Not AvailableThe development of high-efficiency blue OLED emitters is crucial for the OLED industry. However, progress has been slow, and DSCC predicts that in 2022, there will still be no commercially viable blue OLED emitters.LCD Capacity Expansion Delays, Even HaltedOriginally, DSCC expected significant expansion in LCD production capacity in 2021. However, with the price drop of LCD panels, plans for expansion have been delayed or canceled, affecting companies like BOE, CSOT, HKC, and Tianma.Semiconductor and Component Prices DropFollowing the price increase in LCD TV panels, other components like glass, DDICs, and polarizers also saw price hikes due to supply shortages. However, DSCC predicts that prices for display components such as glass, polarizers, and DDICs will begin to fall in 2022.Mergers and Acquisitions in China's FPD IndustryDuring periods of market downturn, smaller players in the display industry are often acquired. For example, China Star Optoelectronics has acquired Samsung's Suzhou factory, and BOE has acquired CEC Panda's factory. DSCC predicts this trend will continue in 2022.OLED Sales Will Surpass miniLED in IT ApplicationsIn addition to smartphones and TVs, the IT sector is expected to see competition between LCD and OLED displays. DSCC predicts that OLED notebook panel shipments will grow by 80% in 2022, while miniLED shipments, driven by Apple's MacBook Pro, will see growth of 150%. In the tablet market, miniLED will see higher growth, but OLED shipments will still increase significantly.
Resistor: Resistors are one of the most common electronic components. They are used to limit the current flowing in a circuit. Depending on their resistance value, they are used in different circuit designs to control voltage and current.Capacitor: Capacitors store electrical energy and play important roles in filtering and stabilizing current in circuits. They are widely used in power supply systems, signal processing, and energy storage.Diode: Diodes are components that allow current to flow in only one direction. They are primarily used in rectification processes to convert alternating current (AC) to direct current (DC), as well as for voltage regulation and protection in circuits.Transistor: Transistors function as switches or amplifiers. They are the building blocks of modern electronics, used in everything from audio amplifiers to microprocessors, for amplifying signals or switching electronic signals.Integrated Circuit (IC): An IC combines many electronic components (resistors, capacitors, diodes, transistors) into one small package, providing high functionality and efficiency. ICs are the backbone of modern digital systems and devices.Transformer: Transformers are used to increase or decrease voltage levels in circuits. They work on the principle of electromagnetic induction and are essential in power distribution and AC signal transmission.Inductor: Inductors store energy in a magnetic field when current flows through them. They are commonly used in power supplies and filters to smooth current and block high-frequency noise.Power Management IC: Power management ICs regulate and distribute power in electronic systems. These ICs handle voltage conversion, battery charging, and power control, ensuring the proper functioning of devices that require stable power supply.Switch: A switch is a simple yet critical component that opens or closes an electrical circuit. It is used to control the flow of electricity and is found in nearly every electronic device.Sensor: Sensors detect physical changes in the environment, such as temperature, humidity, or light, and convert these changes into electrical signals. Sensors are key components in applications like automation, robotics, and IoT devices.
In the second quarter of 2021, the United States, South Korea, the European Union, and Japan announced new semiconductor strategies, while China’s semiconductor plan was still in preparation. According to initial estimates, over the next five to ten years, global investments in the semiconductor industry will total at least $1.5 trillion. Notably, based on past semiconductor trends, major industry booms are often followed by significant downturns, so semiconductor companies must remain cautious about expanding production. In recent years, the global semiconductor supply chain has faced immense challenges—COVID-19 and international trade disputes severely disrupted the global supply chain, revealing flaws in national supply chains. In response, governments have shifted focus to “internal circulation,” with a semiconductor competition centered on "improving internal capabilities" now underway.Semiconductor Strategic Plans Worldwide:The global semiconductor industry has entered a new phase, where the focus has shifted from economic global cooperation to the construction of a complete semiconductor supply chain.United States "Semiconductor Incentive Program" – $52 billion investmentOn May 11, 2021, 64 companies formed the U.S. Semiconductor Alliance (SIAC) and urged Congress to approve the $52 billion "Semiconductor Incentive Program." The program aims to significantly enhance U.S. chip production and research capabilities within five years, including $39 billion for production and R&D, $10.5 billion for project implementation, and $1.5 billion for emergency financing.South Korea "K-Semiconductor Strategy" – $510 trillion won investment over 10 yearsOn May 13, 2021, South Korea announced the "K-Semiconductor Strategy" with a massive $510 trillion won investment by 2030. The initiative, which aims to lead the global semiconductor supply chain, will involve public-private collaborations, with tax incentives, financial support, and talent development at its core.EU "2030 Digital Compass" Plan – Production of 20% of global high-end semiconductorsIn response to the pandemic, the EU launched the "2030 Digital Compass" plan to reduce dependence on U.S. and Chinese tech. The plan includes a €50 billion ($38.6 billion) investment to create a robust semiconductor ecosystem in Europe and aims to produce 20% of the world's cutting-edge semiconductors by 2030.Japan’s Semiconductor Digital Industry StrategyJapan’s Ministry of Economy, Trade, and Industry (METI) outlined its "Semiconductor Digital Industry Strategy" on June 4, 2021, emphasizing global cooperation in semiconductor manufacturing, with a focus on digital investments, advanced logic design, and strengthening domestic industry resilience.China’s "Chip Confrontation" Plan – $1 trillion investment?China is reportedly preparing a massive $1 trillion semiconductor investment plan, led by Vice Premier Liu He, designed to help local chip manufacturers overcome U.S. sanctions. This plan could connect with China's "2030 Plan" and the "14th Five-Year Plan," which highlight third-generation semiconductor development as a priority. China has already made significant strides with large-scale investment in its integrated circuit industry, such as the establishment of the National Integrated Circuit Industry Investment Fund, which has provided billions for manufacturing, design, and equipment.Caution on Semiconductor Investments and ExpansionWhile countries push forward with strategic plans, semiconductor companies must exercise caution. SEMI forecasts 29 new semiconductor fabs to be built by 2022, with over $140 billion in equipment spending. However, the semiconductor industry is cyclical, and past data shows that industry booms often precede downturns. This pattern demands careful investment and capacity expansion strategies, particularly when new projects come online, as investments must be weighed for long-term returns.Conclusion: Global Collaboration for Win-Win OutcomesDespite strong national efforts, the semiconductor industry is deeply intertwined, with the production process spanning multiple countries and regions. As the U.S. leads in design, Taiwan and South Korea set manufacturing benchmarks, and China boasts the world’s largest semiconductor market, but faces significant manufacturing gaps. For global success in the semiconductor industry, it will require joint efforts across all regions, combining capital, technology, and expertise.
Let’s start with TSMC. Due to the U.S. implementing a ban, TSMC was forced to 'cut off' supplies to Huawei. This caused great headaches for Huawei, as only TSMC could produce 5nm chips. How impressive is TSMC? Some of the world’s most advanced chips, like Qualcomm Snapdragon, Apple A-series, and Huawei Kirin, are all produced by TSMC. The company controls 53% of the global market share. Although TSMC’s size is less than a third of Huawei’s, its net profit in 2019 was 20 billion more than Huawei’s. Why is TSMC so outstanding? Because it has perfected the manufacturing of integrated circuits. It can pack 30 billion transistors onto a chip the size of a fingernail.2Let’s also talk about ASML from the Netherlands, which is translated as "阿斯麦" in Chinese. The most important lithography machines used by TSMC to produce chips come from ASML. How impressive is ASML? It’s the only company capable of manufacturing lithography machines for producing 7nm and 5nm chips. ASML has a strict purchasing policy. Its most advanced lithography machine costs around 150 million euros per unit, and only companies that have invested in ASML, like Intel, Samsung, and TSMC, can receive priority in the supply of these machines. Chinese companies desperately want to buy them, but ASML just doesn’t sell to them; it only sells 'older models' to China. Why is ASML so impressive? Because it has pushed precision optics and machinery to the extreme. Just to give one example, the air in ASML’s production workshop is 10,000 times cleaner than the air outside.3Why am I talking about TSMC and ASML? Because I recently saw a statement: 'In every industry, 1% of people take 99% of the cake, and the remaining 99% rely on the 1% of the cake to get by.' We used to talk about the 80/20 rule, but in the last 20 years, especially in the last decade, in high-tech and emerging fields, the 80/20 rule has evolved into the 1/99 rule, meaning 1% vs. 99%. Take TSMC and ASML I mentioned earlier, for example. Or take the booming live-streaming e-commerce; now, even though over a million people are engaged in live-streaming, influencers like Viya and Li Jiaqi, who are in the 1%, take 99% of the industry's cake. So, what I want to say is this: No matter which industry you're in, strive to become that 1%. How do you become that 1%? Pursue excellence.4Pursuing excellence is not just a privilege for the experts; ordinary people can do it too. Let me tell you a true story, one from Liu Run, the Chairman of Runmi Consulting. One day, Liu Run was heading to the airport from Xujiahui, and while searching for a taxi in front of the Meiluo Building, a taxi spotted him and professionally stopped right in front of him. The driver asked, 'Where are you headed?' Liu Run replied, 'To the airport.' The driver continued, 'I only work in two places in Xujiahui: Meiluo Building and Junyao Building. Before I picked you up, I circled Meiluo Building twice, and finally saw you coming out of the office building.' Liu Run said, 'You have a method!' The driver replied, 'Yes, even driving a taxi requires scientific methods.' Liu Run asked, 'What kind of scientific method?' The driver began to explain in great detail: 'You need to understand statistics. I've calculated precisely, I drive for 17 hours a day, pay 380 yuan to the company, spend about 210 yuan on fuel daily. If you break down the costs per hour, it comes to 34.4 yuan. The cost isn't based on distance, but on time. I’ve done data analysis, and the average empty driving time between passengers is 7 minutes. If you keep picking up passengers with only the base fare, you won’t make much money that day. So, you need to choose where to park, when, and who to pick up, and actively decide where you’re going.'5
Complaining is a major poison in the workplace: Complaints not only harm the individual but also spread negative emotions, which affect others. This is referred to as "emotional pollution" that, like car exhaust, can contaminate the atmosphere around the complainer. Keeping emotions under control is vital for maintaining a positive and productive environment.The greatest victim of complaining is the complainer themselves: Complaints often result in subpar work performance and damaged relationships with colleagues. Those who consistently complain may be seen as arrogant or incompetent, leading to the loss of valuable connections and opportunities.Gratitude for the good things in life: Life is not about complaining but about appreciating what one has. Challenges and workload can seem daunting, but when tasks are assigned, it’s because others believe in your capability. Leaders trust those they believe in, and this trust leads to more opportunities. Embracing this trust fosters a positive perspective and helps overcome struggles.Stop complaining and focus on doing good work: Success often comes disguised as challenges and setbacks. However, persistence and hard work, despite difficulties, lead to excellence and eventually to success. The process may seem slow and arduous, but continued effort will bring greater results and fulfillment.The message is clear: focus on gratitude, perseverance, and self-reflection to achieve success without resorting to complaining.
On April 4, 2022, Yueqing Kejian Electronics Co., Ltd. hosted its annual "Mount Bai Long Climb Event." Over 30 people, including Mr. Zhou and Mr. Ni, participated in this event, themed "Be an Environmental Guardian." As the first light of dawn broke, everyone arrived early at the event site. After distributing supplies and warming up, the climbing event officially began with the host's signal. Groups of people gathered in threes and fives, energetically making their way up the winding mountain path, creating a lively and passionate atmosphere. Amid the laughter, our colleague Ah Hai sang his way to the finish line in just 20 minutes. Soon after, the second, third, fourth, and fifth finishers followed, with less than 30 seconds separating them. Everyone clapped in appreciation, as the competition ended in a half-and-half result, but everyone walked away with a sense of accomplishment.Though sweaty and tired after reaching the summit, the panoramic view of lush greenery made it all worthwhile. The descent was equally vibrant, with loud songs filling the air, interspersed with occasional “howls,” hearty laughter, and bursts of optimistic declarations. Holding bags of “victorious fruits” in their hands, participants recognized that environmental protection requires collective effort. They understood that starting with personal actions, cleaning work is both challenging and noble. It’s essential to respect the labor of others and oneself, and everyone truly embodied the role of environmental guardians.The event concluded with cheers and toasts, leaving behind a sense of fulfillment. Not only did the event help participants unwind, exercise, and cultivate their spirits amid their busy work, but it also fostered better communication, improved team cohesion, unity, and happiness. It highlighted Kejian Electronics' positive, united, and harmonious spirit.
Developing Independent Chips: Huawei focused on enhancing its chip development, starting as early as 2003. After facing setbacks in the mobile chip market, it began producing its own chips, such as the Kirin series. Despite challenges, the company continued to push forward, even expanding its efforts to develop advanced semiconductors and securing reserves to handle the chip shortage.Selling the Honor Brand: To mitigate the impact of the sanctions, Huawei sold its Honor brand in November 2020. This move allowed Honor to regain access to suppliers like Qualcomm, which Huawei itself couldn't utilize due to the US sanctions. This strategic sale helped Huawei focus more on its core business while enabling Honor to independently thrive.Expanding the Ecosystem with HarmonyOS: Huawei has also been advancing its "1+8+N" strategy, which involves the integration of smartphones, tablets, PCs, wearables, and more into a connected ecosystem. Along with this, Huawei opened its HarmonyOS to the public in June 2021, aiming to establish a broad ecosystem in the AIoT sector.Adjusting Consumer Business Strategy: As part of short-term recovery, Huawei has adjusted its distribution strategies by focusing more on high-end devices and integrating hardware products like smart speakers, earbuds, and AIoT devices alongside smartphones.These approaches show Huawei's multi-faceted response to the constraints of the chip shortage and market challenges, with an emphasis on innovation, resourcefulness, and strategic shifts
