China will surpass Korea in total output of Gen 8 LCD next year. Although it seemed like it will take about 2 to 3 years at first, its speed became faster due to Chinese government’s full-range of support. It is predicted that there will be break in growth of Korea’s display industry.

Market investigative company called IHS Technology predicted on the 21st that China will surpass Korea, which is currently the best producing country, by recording share of 43% in its Gen 8 or higher display production in 2016. LCD panels are currently the biggest size in Gen 8 production line and they are most efficient from productivity aspect.

China’s Gen 8 large-sized LCD panel production’s share was merely 10% 2 years ago. However it surpassed Taiwan in 2013 and rose as third best producing country in the world, and it also surpassed Japan last year with huge differential. As it records share of 37% this year also, it is predicted that it will close its gap with Korea by 4%. It is forecasted that it will surpass Korea in share and be ahead by 7%.

Korea’s share is continuously decreasing. Although it recorded 56% in 2013, it fell greatly this year as it recorded 30%-range for the first time. This happened because China rapidly increased output of LCD through ‘Don’t Ask Investment’ as it posed as home appliances and communication industry’s production factories.

When 2018 comes when BOE will regularly operate Gen 10.5 and Gen 8 factories, difference between shares will be even bigger. CEC Panda announced last March that it will establish Gen 8.5 factories, and HCK also announced that it will invest 2 billion dollars in establishing TFT LCD factories. Until recently HCK received open-cells from display manufacturing companies and supplied them to set companies by assembling its own backlight, modules, and etc. HCK began its construction of factories this second quarter.

Korea’s display industry is seeing that Korea will have difficult time from preventing China to overtake Korea unless large-sized investment happens immediately. Experts think that Korea needs to focus on qualitative growth rather than expanding quantatively. However China’s activity in OLED 176 (OLED) field, which Korea is advocating as its last resort, seems very unusual.

“As Chinese government is shifting its focus of investment to OLED industry from LCD, around 20 companies are starting to produce OLED. As it is expected that OLED industry will follow same sequence as LCD, differentiation in technologies and preemptive investments are urgently needed.” Director Jung Yoon Sung of HIS said that China is focusing on OLED now and Korean companies need to work on technologies and investments.

Staff Reporter Sung, Hyeonhee |

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<■ Forecast of Gen 8 or higher TFT production capacity shares per country (Standard: Area) ▲ China’s shares in Gen 8 or higher TFT production capacity shows 17% (2013), 26% (2014), 37% (2015), 43% (2016), and 47% (2017). ▲Japan’s shares in Gen 8 or higher TFT production capacity shows 17% (2013), 15% (2014), 13% (2015), 12% (2016), and 11% (2017). ▲Korea’s shares in Gen 8 or higher TFT production capacity shows 56% (2013), 49% (2014), 41% (2015), 36% (2016), and 34% (2017). ▲Taiwan’s shares in Gen 8 or higher TFT production capacity shows 10% (2013), 9% (2014), 9% (2015), 9% (2016), and 8% (2017). >