TCL Technology: Huaxing’s Q1 shipments are accelerated to some degree by the large-size trend

TCL Technology reported in a question-and-answer session for investors that driver ICs would have a significant effect on the industry’s production potential in the first quarter of 2021, with an average usage rate of 3 percent to 4%. The shipping region of TCL Star in the first quarter is essentially the same as it was in the fourth quarter of 2020, and shipments have decreased to some degree, but the key reason is not the effect of the driver IC, but the growth of our large-size pattern, and production capability is essentially unchanged. Furthermore, the number of shipments decreased slightly;

In addition, we pushed hard for the t3 line to be converted from 90% cell phones to 50% mobile phones, 30% other, and 20% industrial control vehicles. We would be small-sized as a result of this package arrangement. The number of exports has been decreasing. In general, choosing the right market segment for each unit area aids the company’s growth.

TCL Technology pointed out that while the prices of raw materials such as driver ICs, polarizers, and photoresists are on the rise, they do not account for a large portion of the panel’s cost; and, so far, Huaxing has not fully accepted the price increase of upstream raw materials because we have long-term bargaining power; at the same time, we are allocating resources to other projects.

TCL Technology has reported that our brother firm, TCL Electronics, is the world’s second largest TV shipping company, so the industry’s total shortage of cores would not impact downstream shipments. As far as we know, there are no chips on the market. This thing has been going on for more than a year, and we are yet to see any evidence of panel exports being slowed.