Optical film refers to the process of depositing or coating one or more layers of dielectric film, metal film, or a combination of these two types of films on optical components or independent substrates to alter the transmission characteristics of light waves, including projection, reflection, absorption, scattering, polarization, and phase changes.

According to their different functions, optical films can be divided into reflective films, polarizers, diffusion films, brightening films, and filters. Among them, color filters, polarizers, and backlight modules composed of diffusion films and brightening films are important components of TFT-LCD.

Optical film is a pearl in the display industry chain, with high barriers and high gross margins, and a market space of nearly 100 billion yuan.

Data shows that the upstream of the optical film industry chain mainly consists of PET particles, which are usually stretched into base films, including PVA film, TAC film, PET base film, etc.

The downstream components are assembled into backlight modules, LCD modules, polarizers, OCA optical adhesives, and other components.

Terminal consumption is applied in fields such as display devices, optical communication, precision optical equipment, photovoltaics, and automotive decorative materials.

Optical film is the core component of backlight module and an important part of liquid crystal module, with a relatively high cost proportion. Taking a 42 inch TFT-LCD (LED) TV as an example, optical film accounts for 37% of the backlight module cost and about 17% of the total LCD module cost. Optical film is located in the upstream of the LCD industry chain, with a gross profit margin of about 40% and a relatively high profit level in the LCD industry chain.

From the perspective of the competition pattern of the optical film market, in the field of brightening film, 3M of the United States has gradually withdrawn from the Chinese TV LCD brightening film market, focusing on the development of high-end composite brightening film for mobile phones. At the same time, the sales revenue of the brightening film enterprises in Chinese Mainland, such as Smart Technology, has continued to increase.

In the field of diffusion and reflection films, Japanese and Korean companies such as Huihe, Zhiji Electric, Benki Industries, and South Korean SKC account for over 60% of the market share. In the field of polarizing films, Japan's Nippon Denko, Sumitomo Chemical, and South Korea's LG Chem hold approximately 80% of the market share, while companies such as Sanlipu and Shengbo Optoelectronics hold 20% of the market share.

In the field of protective film, it is controlled by foreign companies such as Japan's Toray, Japan's Teijin, and South Korea's SKC, while domestic enterprises include Changyang Technology, Yuxing Corporation, Hefei Lekai, etc.

The 14th Five Year Plan clearly proposes to vigorously develop strategic emerging industries. In terms of functional film materials, water treatment films, optical films, photovoltaic EVA films, and lithium battery separators continue to benefit from the long-term growth of downstream demand. With the continuous promotion of policies and the driving force of industrial technology, the industry is expected to benefit in the long run.