Taiwan panel companies have invested a cumulative us $600 million in plant construction and equipment in 2010 to expand LED panel capacity, according to new data released by the International Semiconductor Equipment and Materials Industry Association on May 31. At this point, China's Taiwan LED panel industry scale more than South Korea, Japan to become the world's largest LED panel production.

According to DisplaySearch, LED backlit LCD TVS will account for 50% of all flat-panel TVS by 2012. The huge market size is the main reason for Taiwanese enterprises to increase LED panel investment. In addition, the merger of several large panels such as Taiwan Chimei and Innoluang makes the overall industrial scale of these leading enterprises expand rapidly. The huge production capacity has attracted large orders from SONY, Toshiba and Dell. Under the premise of the large increase in manufacturing and assembly orders, enterprises are bound to expand capacity and increase investment in upstream mainstream products. Some analysts believe that the expansion of the industrial scale can ensure the high yield of LED panels, which indicates that the development of Taiwan panel enterprises has entered a new stage.

Digital China brand communication research institute consultant Jiang Peifeng does not agree with this view, he believes that the growth is very normal, the expansion of the industrial scale of Taiwan enterprises is only a strategic growth, does not mean that China's Taiwan enterprises in strength has surpassed and South Korea and Japan enterprises. Japanese and South Korean companies are innovators in panel technology, while Taiwanese companies in China are known for manufacturing, and it is not unusual for them to outinvest in plant construction and equipment. But now the gap between China's Taiwan panel and Japan and South Korea lies in the influence of technology on the brand is not as big as Japanese and South Korean enterprises.

In addition, the industry also warned that Taiwan panel enterprises also present a small and miscellaneous state. For small businesses, there are two major problems. One is whether the rate of quality can be improved. So far, the technology of LED panels used in small electronic devices such as mobile phones and digital media players is relatively mature, but the rate of quality of LED panels used in televisions is very low. LED industry is a technology-intensive and capital-intensive industry. Small and complex enterprises are not only easy to generate repeated investment, but also difficult to form joint forces. In addition, panels have also entered the era of brand, and small and medium-sized enterprises that are just struggling for low prices will either be acquired by their large enterprises or face the risk of being out of business.