Expected To Pass Korea In 2018 and makes up of 31% world market share
Many Chinese Companies Such As Ever Display Have Started Mass-Production…It Is Expected That Their Output Will Take Up 31% In Global Market
Following LCD, China is also chasing after South Korea in active-matrix organic light-emitting diode (AM OLED) market and is expected to surpass South Korea in production capacity in 2018. Experts are criticizing South Korean display industry for taking a complacent stance without any active investments while Chinese industry is threatening South Korean industry more and more each day.
Chinese display market investigative company called Sigma Intel predicted that Chinese businesses’ output in AM OLED will take up 31% in global market in 2018. It is also expecting that production capacity of low-temperature poly-silicon (LTPS) AM OLED, which is considered as a previous process step of OLED, will take up more than 50% and surpass South Korea.
Currently Samsung Display has an unrivaled position in small-sized AM OLED market. However Chinese businesses such as Ever Display, Tianma, Visionox, and others recently have started mass-production, and BOE is also recently building Gen 6 LTPS AM OLED production line. Ever Display succeeded in producing 6-inch OLED panels with 4K resolution in last month, and leadership in OLED production will instantly change if Chinese businesses secure constant level of mass-production capacity.
Chinese businesses are after its own market as a first step because they can secure competitive edge in global markets just by corresponding to Chinese market. In May, there were 15 kinds of Smartphones by major brands that had AM OLED. Percentage of Smartphones with AM OLED that was sold in China is 6.9%, which is 16% higher compared to last year. Other than Smartphones, AM OLED is also rapidly expanding towards Smart Watches, car displays, virtual reality (VR) equipment, and others. Not only is it built in Apple Watches, but it is applied in Huawei Watches as well as Samsung Electronics, Sony, and others’ VR equipment.
Market investigative company IHS is predicting that percentage of Smartphones with AM OLED panels in global Smartphone markets in 2016 will be up to 30%. Even until first half of last year, only Samsung Electronics’ Smartphones had AM OLED panels.
AM OLED is a spontaneous emission display element and its characteristics are its higher color gamut and faster responsive speed than previous LCD panels. Although LCD panels still hold higher shares in overall display market, AM OLED is rapidly growing as supplies of Smartphones and wearable equipment with AM OLED are increasing.
Competitive edge in price is also increasing. Compared by full HD 5-inch, difference in prices between AM OLED and LCD panels decreased to $9 in last month when it was more than $20 previously. It is expected that it will be decreased down to $4 by end of this year due to expansion of Chinese businesses’ production capacities.
“Chinese businesses’ influence in AM OLED panel market will continue to expand as they use large-sized Chinese market as their stepping stones. Because it is a major threat towards South Korean display industry from securing profitability, Korean display industry desperately needs to prepare long-term countermeasures.” said one expert in this industry.
▲Ever Display produced prototypes of 5.5-inch and 6-inch panels from Gen 4.5 AM OLED line in March of 2013 and have been producing 15K-sized products per month starting from end of 2014.
▲BOE started mass-production of Gen 5.5 AM OLED in second half of 2014 and is actively building Gen 6 LTPS AM OLED production line. It is currently discussing about delivering corresponding products to Chinese Smartphone manufacturers.
▲Visionox finished building Gen 5.5 AM OLED panel production lines and started mass-production in first half of this year. It has production capacity of 1.1K per month
▲Tianma began construction of Gen 5.5 AM OLED production factory in 2013 and is expected to produce 5.5-inch AM OLED starting from end of this year.
Staff Reporter Sung, Hyeonhee | sunghh@etnews.com