3M, which has been monopolizing DBEF (Double Brightness Enhancement Film) markets for LED TVs, is introducing an outsourcing production system for the first time. It started an outsourcing production system that shares major technologies of DBEF with outside companies. It is interesting to see whether or not 3M’s monopolistic structure that has been monopolizing South Korea’s DBEF markets will change into a competitive structure.
According to industries on the 11th, 3M recently signed off on a contract with SKC Hi-Tech&Marketing about selling its Core and introduced an outsourcing production system for DBEF. Although it produced and supplied DBEFs on its own based on its patents, now it is going to sell Core to outside companies at the same time. In result, products from 3M and products from outsourcing companies are going to compete against each other in markets.
SKC Hi-Tech&Marketing recently received Core from 3M and started producing DBEFs in order to target markets for large TVs that are at least 65 inches and digital signage.
DBEF, which uses LED as its light source, is a part that is required for LCD TVs. It is especially used to compensate low brightness of edge LED TVs. 3M possesses strong patents in this field and monopolizes 100% of market shares in this field.
Although many companies attempted to produce their own DBEFs, they could not bring influential changes. 3M practically monopolized DBEF markets.
It is heard that 3M also signed off on contracts with other companies in South Korea and other countries about selling its Core. If companies make strategic partnership with 3M and purchase 3M’s Core, they are able to produce DBEFs based on 3M’s technologies without having to pay separate loyalty fee.
SKC Hi-Tech&Marketing introduced a new product that supplements weaknesses of current DBEF through large displays that are at least 65 inches. It solved a problem that causes wrinkles when current DBEFs are applied to large panels.
Current DBEFs are manufactured through expensive PC (Poly Carbonate) film instead of regular PET (Polyester) film due to characteristics of light that passes through polarized film. SKC Hi-Tech&Marketing developed special PET film that controls optical axis so that polarization of light is not affected. This film is called SRPF (SKC HT&M Reflective Polarizer Film).
“We already made supply contracts with companies in South Korea and other countries and we are currently producing SRPFs.” said a representative for SKC Hi-Tech&Marketing. “We solved a problem that causes wrinkles when current DBEFs are applied to large displays and we also increased performance of DBEF by combining our technology that controls optical axis to 3M’s Core technology and has secured competitive edge.”
Industries believe that 3M is starting to sell its Core in order to increase profitability of its businesses. Because major patents for DBEFs are expected to expire soon, 3M is planning to grab upper hands in markets in advance before similar products from other companies start to appear in the future.”
There is a chance that 3M will start to produce lesser amount of DBEFs in the future when it believes that selling Core is a positive business. Although it receives pressure from unit costs of parts from going down every year, selling Core can bring significantly lesser pressure on 3M.
Staff Reporter Bae, Okjin | withok@etnews.com