CAIHONG DISPLAY DEVICES CO.(SH:600707) Jing Ji Guan Cha Wang·2025-11-08 13:20Core Viewpoint - The establishment of the China Glass New Materials Industry Chain Supply Chain Alliance marks a significant step towards enhancing the safety and stability of China's display industry supply chain, which is currently facing substantial risks due to high market concentration in the upstream glass substrate sector [2][3][4]. Group 1: Industry Overview - By the end of 2024, China's display panel output value is expected to account for approximately 50% of the global market, with shipment volume exceeding 70% [4]. - The top three global manufacturers in the substrate/carrier glass sector hold over 90% market share, while domestic companies in China have less than 10% [4][5]. - The display industry chain is divided into three segments: glass/carrier substrate (upstream), liquid crystal panels (midstream), and electronic displays (downstream) [4]. Group 2: Supply Chain Challenges - The current level of self-sufficiency in China's display industry supply chain is considered basic, with critical raw materials and equipment lacking redundancy [5]. - The glass substrate is identified as one of the weakest links in the display panel supply chain, necessitating both technological breakthroughs and the formation of market alliances [5]. Group 3: Alliance Formation and Goals - The China Glass New Materials Industry Chain Supply Chain Alliance aims to break down technological barriers, enhance collaboration, and create a resilient industrial ecosystem [5][6]. - The alliance was initiated during the 2025 Low-Carbon Inorganic Non-Metallic Materials Modern Industry Chain Joint Action and the Second Glass Industry Development Conference, with representatives from various industry sectors participating [4][5]. Group 4: Future Prospects - The display industry in China is projected to benefit from significant investments exceeding 1.5 trillion yuan, with over 60 display panel production lines established, resulting in an annual capacity of approximately 250 million square meters [7]. - The rise of new technologies, such as artificial intelligence, is expected to reshape the industrial landscape, providing substantial growth opportunities for the display industry [7][8]. - The integration of OLED technology into various applications, including automotive displays, is anticipated to create new market spaces, further emphasizing the need for a secure and expansive supply chain [8].