Hanmedia: After LCD, will South Korea also lose the OLED market to China?

On November 19, the South Korean media outlet "Newsis" published an article stating that the OLED (Organic Light-Emitting Diode) market, which was previously dominated by South Korean panel manufacturers, is now facing intense competition from Chinese companies.

Chinese companies are increasing their investment, including the construction of next-generation 8.6-generation OLED factories one after another. In this regard, some people are worried that, just as South Korean manufacturers lost the liquid crystal display (LCD) market to China, they may now follow in the same footsteps in the OLED field.

According to industry insiders, China's TCL Group's panel manufacturer, CSOT, recently started the construction of an 8.6-generation OLED production factory in Guangzhou, China. This factory will produce OLED panels for small and medium-sized IT products such as displays, laptops, and tablets.

The factory has a monthly production capacity of 22,500 panels, with an estimated investment of 29.5 billion yuan.

CSOT CEO Zhao Jun said at the groundbreaking ceremony: "This will be a turning point for us to lead the market."

CSOT is currently developing the 8.6-generation OLED panel, whose glass substrate size is more than twice that of the existing 6-generation OLED panels, significantly improving production efficiency. From the company's perspective, this technology is expected to enhance production efficiency and cost competitiveness, leading the next generation of the panel market.

In recent times, Chinese companies are rapidly increasing their investment in 8.6-generation OLED panels. BOE plans to invest 63 billion yuan in 8.6-generation IT OLED panels next year, with a planned monthly production capacity of 32,000 pieces.

Veridian also plans to build a mass production line for 8.6-generation IT OLED panels by 2027. It can be seen that Chinese companies are accelerating their steps into the OLED market.

According to data from market research company Counterpoint Research, in the second quarter of this year, Samsung Display led the OLED market with a 37% market share, but the total market share of Chinese companies such as BOE (15%), Veridian (12%), and CSOT (9%) is higher. LG Display's market share is only 9%. The market share of South Korean domestic companies in the OLED market is declining, while the market share of Chinese companies is rising.

Samsung Display is the only South Korean domestic company investing in 8.6-generation OLED. The company plans to invest 4.1 trillion won in its 8.6-generation OLED production line next year to ensure a monthly production capacity of 15,000 pieces.

It is reported that due to recent losses causing deteriorating business conditions, LG Display is carefully reviewing its investment in 8.6-generation OLED. LG Display President Jeong Jechong said regarding the investment plan for 8.6-generation OLED: "We are studying whether it is necessary to make new investments."

Some people are worried that, after the LCD market, South Korean companies are handing over the leadership of the next-generation OLED market to China.

Market research company Omdia stated: "South Korean companies will dominate the OLED market before 2027, but by 2030, China is expected to account for 66% of the market share, while South Korea's market share is expected to reach 34%."

Original: www.toutiao.com/article/1849203525945611/

Statement: The article represents the views of the author.