(I) Upstream: Accelerated Localization of Materials and Equipment
The upstream industry features "comprehensive breakthroughs alongside reliance on high-end imports". In the materials sector, the localization rate of key materials is expected to exceed 70% in 2025. Among them, CSG Holding holds a 28% market share in the glass substrate segment, and IRICO Group’s monthly capacity of Gen 6 (G6) LTPS substrates reaches 120,000 pieces; Sanlipu’s domestic market share in the polarizer segment rises to 27%, breaking the monopoly of Japanese and South Korean enterprises; the localization rate of brightness enhancement films has reached 65%, yet high-end materials such as quantum dot films still rely on imports, with material costs accounting for 43% of the total.

In the equipment sector, the localization rate of Cell process equipment has increased to 35%. Keyun Laser’s G6 laser lift-off equipment holds a 28% market share, and Xinyihua’s PI coating machines have realized import substitution; in the inspection equipment segment, JingceElectronic’s AOI systems occupy 43% of the market share in newly-added production lines. However, the localization rate of Array process equipment remains below 15%, and core equipment such as exposure machines and evaporation machines still need to overcome technical bottlenecks.

The driver IC sector shows structural differentiation. The domestic self-sufficiency rate is expected to rise to 45% in 2025, with the combined shipment volume of Silan Microelectronics and Solomon Systech projected to reach 520 million units; demand for in-vehicle display driver chips is robust, with demand expected to exceed 400 million units in 2025. Nevertheless, there remains a capacity gap in advanced manufacturing processes of 28nm and below.

(II) Midstream: High Concentration in Panel Manufacturing
The midstream panel manufacturing sector exhibits a distinct "headquarter concentration effect". In 2025, the three leading enterprises—BOE, TCL Huaxing, and Tianma Microelectronics—will collectively hold 78% of the domestic market share. Relying on its production line layouts in Wuhan and Chengdu, BOE’s shipment volume of small and medium-sized panels is expected to reach 320 million units in 2025, ranking first; TCL Huaxing will see its shipment volume exceed 280 million units through capacity expansion at its Huizhou and Wuhan bases and the acquisition of a Guangzhou factory; Tianma Microelectronics focuses on LTPS products and leads the market share in the in-vehicle and wearable device segments.

In terms of production line layout, Gen 6 (G6) production lines have become the mainstream configuration. Enterprises such as Shenzhen Super Electronic and TCL Huaxing have increased the monthly capacity of single-line large substrates to 150K, reducing the production cost of panels below 45 inches by 18%; meanwhile, panel manufacturers are accelerating the intelligent transformation of production lines. The application rate of AI defect detection systems has reached 48%, and the Overall Equipment Efficiency (OEE) has increased by 22 percentage points.

(III) Downstream: Diversified Demand from End-User Markets
The downstream end-user market has formed a demand pattern of "consumer electronics as the foundation and emerging scenarios as incremental drivers". In the consumer electronics sector, the global shipment volume of smartphones is expected to reach 1.4 billion units in 2025, among which models equipped with small and medium-sized panels (6.1-6.7 inches) account for over 70%; the market scale of LCD panels for tablets will reach 11.8 billion yuan, with a year-on-year growth of 9.1%.

In emerging application scenarios, new energy vehicles have become a key driver. The penetration rate of smart cockpits will exceed 50% in 2025, and automakers such as BYD and NIO are increasing local procurement efforts, with BOE and Tianma Microelectronics having entered the list of tier-1 suppliers; the market scale of micro-displays for AR/VR devices is expected to reach 8 billion yuan in 2025, and high-resolution LCD products with 800 PPI have become the mainstream choice.