The self-sufficiency rate of LCD components and materials in China is currently only around 20% but is expected to rise, driven by subsidies from the China government to expand and construct new facilities for the panel industry's upstream sectors.
Such subsidies were issued to local panel makers over the last few years, which will allow for the self-sufficiency rate for LCD TV panels in China to surpass 50% in 2015. According to Digitimes Research, China panel makers are expected to hold a 21.3% global share in the large-size TFT LCD panel industry in 2015, up from 15.7% in 2014, as the subsidies have allowed the local makers to expand 8.5G facilities and production capacity.
The upstream components and materials industry in China has developed relatively late, with local makers reaching only a 20.4% rate for glass substrates and 23.2% for polarizers in 2014. Roughly 80% of TFT LCD core materials and components were purchased from non-China makers in 2014.
CINNO Research meanwhile noted that China makers' driver IC self-sufficiency rate reached 21.3% in 2014 while that for TV, monitor, notebook and tablet applications reached 8.2%. The LCD panel IC driver rate is expected to reach 40% in 2018, the firm added.
