LCD splicing industry market is developing rapidly, however, the LCD splicing the success of the product, did not provide the "big patchwork industry" scale growth. The reason is that, although widely used, this product quantity is huge, but also low price: LCD splice for traditional splicing unit range from 50000 to the concentrations of the unit price, fell to thousands to four or five $ten thousand range. Recognized in the industry, liquid crystal display (LCD) has become one of the biggest professional display field "killer" price.

    Liquid crystal display products prices continued to decline trend, in any field using liquid crystal display technology: color TV, computer, mobile phone, commercial display, liquid crystal splicing wall and so on. These areas there is no accident in the past five to eight years suffered price falling embarrassment. In the most people familiar with the LCD TV, for example: 2004-2005, 32 inch LCD TV sales prices in 16000-26000 yuan, and the end of 2013, the lowest price is 2013 RMB, even rich high-end products, also only have a few models price at 2000 yuan.

    Liquid crystal display (LCD) the root cause of the rapid decline in prices is the core of the liquid crystal display industry: the special law of LCD panel industry. LCD panel industry is a highly centralized manufacturing industry, is a typical investment intensive, technology intensive, capacity intensive. The global LCD market main current capacity of 8 lines to line and 8.5 generation panel construction costs generally in the 12 billion film base plate capacity) to 40000 (earning 27 billion (earning between 100000 film base plate capacity). Although single lower production capacity, will eventually reduce production cost. However, practice has proved that the industry a single LCD panel production line capacity is lower than 30000 piece of base board, where will lose market competitiveness, must rack up losses. So, not a single panel companies in the construction of panel line when target is "lower compression capacity investment cost".

    Characteristic of the liquid crystal panel industry competition, on the other hand, any industry enterprises, must be on the scale of production capacity, as part of the order of magnitude is the market competition ability. This basic standard is: on the base plate quantity over 60000 pieces. It has to do with the upstream industry of local supporting capacity, long-term stable supply of large capacity and the stability of the downstream market cooperation ability are closely related.

    Therefore, in the global market, large size LCD panel not a giant company. Competition for these companies often on the premise of scale advantages, technological advantages to protect. And capacity expansion of scale, any built a new production line has the industry's "production capacity", productivity growth has show jumping, led to the industry as a whole continued volatility in the relative inadequacy and relative excess capacity - when the industry is relatively surplus capacity, the LCD panel prices will continue to decline; And in the industry in a period of time, relatively insufficient capacity will increase to meet the proportion of the previous price decline. This creates a large scale LCD panel prices continued to decline trend.

    In addition, the yield of the global LCD industry from a different generation line 8 years ago more than 30% to 80%, has been fully promoted to now, on average, about 95%, the panel also the efficiency of cutting from about eighty percent to the highest close to an average of 98%. LCD production basic upstream material from the early "relatively insufficient supply of state", also entered the full capacity, market scale diversified process status, panel manufacturing enterprises and also improve the level of cost management, the stability of the key equipment and improve service life. These factors have also contributed to the panel product prices drop, and then become now end     LCD products, including LCD splicing unit prices of the key reasons.

Is simply the price drop, however, is not sufficient to support the LCD splicing technology change the screen splicing pattern of industrial value. LCD technology brought about by the high stability of the more common "products" as the     LCD splicing another key factors affecting the development of domestic industry.