LCD retreats, Samsung, LG and other Korean factories worry that OLEDs are also falling
Since this year, South Korean panel giants such as Samsung and LG have announced the cessation of LCD panel production. Except for some of the local production capacity, they have basically withdrawn from the LCD market and shifted their focus to the OLED market. But in the OLED market, Chinese companies are catching up faster, and competition in this market is not easy.
According to industry research company Qunzhi Consulting, Samsung leads all other manufacturers with an absolute share of 85.4% in the global LCD for Samsung panel market in 2019, and the second-ranked Chinese company BOE has a share of only 3.6%.
LG ranked fourth in the LCD for Samsung market last year, behind Samsung, BOE, and Hehui Optoelectronics, with a share of 2.8%. However, LG’s strength lies in large-size OELD panels. It has only begun to enter small and medium-sized panels in recent years. OLED panels, so the share is not high.
South Korea’s Samsung and LG are now leading in the OLED field, but they are also worried because Chinese companies are catching up too fast. With BOE, Huaxing Optoelectronics, Tianma Microelectronics, Companies such as Visionox are vigorously building OLED production of the 5.5 and 6 generation lines, and the number of LCD for Samsung panels produced in China will increase significantly in the next three years.
Data shows that Chinese companies have already put into production 12 OLED production lines, and there are still 7 under construction and planning, with a total investment of more than 350 billion yuan, of which BOE accounted for 139.5 billion yuan. They are more than 2015 Increased 8 OLED production lines in the year.
South Korean companies are worried that Chinese companies have not only increased their production capacity significantly, but after mastering the production technology of LCD and OLED panels, they also have new generation display technologies, such as mini LED, micro LED and other emerging display panels. The capital to compete on the same platform even exceeds the speed of mass production.
South Korean companies are worried that if such development continues, Chinese companies will sooner or later control the entire industrial chain, from upstream equipment to downstream products will be localized.
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