In 2018, Korean LCD equipment manufacturers will rely more on the Chinese market
It is reported that, driven by Samsung Display Co., Ltd. and LG Display's expansion of LCD for Samsung panel production capacity and record shipments mainly to China, South Korean LCD equipment manufacturers' revenue reached a new high in 2017.
Looking forward to 2018, China’s LCD equipment investment will continue to increase as a percentage of the industry’s global investment. South Korean LCD equipment suppliers’ reliance on Chinese LCD panel manufacturers’ purchases is expected to continue to increase.
Among Samsung Display’s major equipment suppliers, AP Systems’ revenue in 2017 reached a new record of nearly 1 trillion won (approximately US$900 million), 90% of which came from production Sales of laser lift off (LLO) systems for flexible LCD for Samsung panels. The other two suppliers, Semes and SFA Engineering, each achieved approximately 2 trillion won in revenue in 2017.
LG Display’s two suppliers Jusung Engineering and DMS each have revenues of approximately 270 billion won. Equipment suppliers Avaco and Invenia have both reached nearly 180 billion won in revenue, while Viatron Technologies’ sales revenue exceeded 100 billion won.
However, the combined capital expenditure of Samsung Display and LG Display is expected to fall to 13-15 trillion won in 2018, down from 21 trillion won in 2017. Has a negative impact on its operations.
As the proportion of liquid crystal display equipment exported to China accounted for more than 50% of South Korea’s total exports of liquid crystal display equipment in 2017, and this proportion is likely to rise in 2018, Chinese panel manufacturers purchase from Korea The proportion of liquid crystal display manufacturing equipment will be critical to the business prospects of Korean liquid crystal display equipment.
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