The following is the It is expected that China’s OLED will surpass South Korea’s in the next five years From Korea daily recommended by recordtrend.com. And this article belongs to the classification: Hardware equipment industry.
South Korean industry has been hard to let go of China’s anti super performance on liquid crystal panel (LCD). Chosun biz, a media unit of Chosun daily, South Korea’s largest newspaper, quoted industry insiders on April 28 as predicting that although South Korean enterprises now dominate the organic light-emitting diode (OLED) panel market, the situation is far from reassuring. If we refer to the story on LCD, Chinese manufacturers may surpass South Korea in the field of OLED within five years.
“Korean business” reported that the display panel market is undergoing great changes. Chinese enterprises that have occupied the LCD panel are gradually expanding to OLED. The “barrier” built by Korean enterprises is being impacted by Chinese enterprises. If they do not make preparations in advance, Chinese enterprises will crowd out Korean enterprises and fully grasp the market.
The report also specifically quoted the speech made by Chang Cheng, vice president of BOE group, in September last year – “we hope flexible OLEDs will account for 40% of the world in 2024”, and declared that this is a signal that Chinese enterprises will devour the OLED market after LCD.
LCD panel used to be the pride of Korean panel industry. From 2000 to 2016, Samsung and LG dominated the global LCD market, and they could even occupy more than half of the global market share. However, this situation began to change with the rise of Chinese enterprises. According to the report, the Chinese government has invested a lot of money for its own panel factories. Since 2015, BOE, Huaxing optoelectronics, Huike and other enterprises have increased production one after another. Finally, in 2017, Korean enterprises have been squeezed to occupy the top position in the global panel industry.
Due to the fierce competition, South Korean enterprises cut LCD capacity again and again on the grounds of low income. Finally, Samsung and LG simply quit LCD and switched to OLED. LG transformed its LCD plant in Guangzhou, China, into an OLED production line last year, and its LCD production line in pozhou, South Korea, will be withdrawn next year. Samsung sold its LCD production line in Suzhou to Huaxing optoelectronics, and its LCD production decreased from 170000 to 80000 per month in 2019.
According to the market research firm “omdia” data, Chinese mainland enterprises will have a 60.7% share in the global LCD TV panel market this year, exceeding the sum of Taiwan, China (20.9%), Korea (11.2%) and Japan (7.2%).
Chinese enterprises, which have squeezed out their competitors, have now become the biggest beneficiaries of the global panel demand driven by the epidemic. According to DSCC, the price of 43 inch LCD panel has nearly doubled from $78 in March last year to $128 in March this year. The 55 inch LCD panel also rose from $115 in the same period last year to $203 this year.
(left to right) global market share of Japanese, Chinese mainland, China, Taiwan and South Korea Chart source: North Korean business
Now, Koreans are worried that the same story will happen on OLED“ North Korea business said that Chinese enterprises’ market share in small and medium-sized OLEDs has exceeded 10%, and they intend to enter the large OLED market with 99% share of South Korean enterprises.
Small and medium-sized OLED is a relatively low threshold category in the field of OLED. Chinese enterprises entered this field in 2016. Three years later, their market share exceeded 10% and increased to 13.9% last year. Although South Korea’s Samsung and LG still have an overwhelming advantage in market share, their combined share has dropped from 88.6% in 2019 to 86.1% last year“ “North Korean business” quoted industry insiders as saying that although South Korean enterprises still have technological advantages, the industry situation can not make them feel at ease.
The industry even predicts that China’s OLED factories may surpass South Korea’s in five years, taking into account what has happened in the field of LCD panels.
“Korean business” believes that the most terrible thing about Chinese enterprises is that they can rely on economies of scale, improve manufacturing technology with the help of mass production, and realize the transformation from “quantitative change” to “qualitative change”. Coupled with the price advantage, it is only a matter of time before they can occupy the market. For example, BOE has become Apple’s OLED supplier, which shows that the quality of OLED screens of Chinese enterprises has been recognized.
China’s Chinese mainland mobile phone market share in the global mobile OLED market. (from top to bottom) Chart source: North Korean business
However, large OLED is still the world of Korean enterprises. Due to the technical difficulty of large-scale OLEDs, even Samsung is unable to mass produce them. LG controls 99% of the market. At present, there is no evidence that Chinese enterprises can surpass LG’s barriers. A person in the industry believes that it will take at least three years for Chinese enterprises to mass produce large-scale OLEDs.
However, different opinions have been put forward. A representative of an industry research company said that Chinese enterprises, including BOE, have begun to study investment plans for large-scale OLEDs. If China makes large-scale investment, the technology gap may quickly narrow and may be surpassed at any time, so they can not be completely assured.
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