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Chinese makers investing in OLED, posing threat to Korean monopoly

Chinese makers investing in OLED, posing threat to Korean monopoly

By BizLED Bureau

May 30, 2017: Year 2016 saw many local Chinese smartphone manufacturers entering the OLED panels market, including BOE Technology Group and six other major companies. This development is threatening the Korean manufacturers who hold the monopoly over the the same market.

The local Chinese players have been increasingly investing in OLED panel technology, and a few have even started new OLED facilities. In total, these companies have invested more than US $9 billion (more than 2 trillion Japanese Yen), reported Nikkei Asian Review.

The local Chinese companies are always in an advantageous position as they receive large financial funding from the government, making them capable to divert large funds into OLED panels manufacturing. Chinese OLED manufacturers believe that OLED display technology will soon replace TFT-LCD display panels.

Apple’s OLED development creates the rush

As soon as Apple announced that it would use OLED screens in iPhone in 2017, the rush to enter the OLED display market had gripped the Chinese manufacturers. Consequently. BOE Technology Group and CSOT also invested large funds into OLED productions. Chinese manufacturers believe that Chinese smartphone manufacturers like Huawei, will also start using OLED, panels, which added to the rush to invest more in OLED panels.

Threat to Korean monopoly

The Japanese manufacturers had the monopoly in the OLED and TFT-LCD display market, before the Korean manufacturers took over the sector and captured the monopoly with the turn of the millennium. The Korean manufacturers now lead in the mass production of LCD screens, and Samsung Electronics, has the monopoly over the OLED panels market for smartphones.

The Chinese LCD makers are also increasing investments, and by 2018, it seems that they may overtake the Korean manufacturers’ top global position. On the other hand, the Chinese OLED makers are also expanding their business in OLED panels, which clearky shows that the Chinese manufacturers have a clear strategy to take over the display technology market.

BOE Technology Group, the leading panel maker in China is coming up with an OLED panel factory in Chengdu, Sichuan,

China, at the cost of more than 500 billion Japanese Yen. The facility will have a monthly production capacity of 10 million OLED panels for smartphones, and mass production will start in early 2019.

Another Chinese manufacturer Huaxing Photoelectric Technology has already started a facility in Wuhan, Hubei, China.

Taking the opportunity, Tianma Micro-electronics has also converted its TFT-LCD plant in Wuhan into an OLED facility. Hehui Photoelectric, Viosionox and other companies have also built new units.

Chinese start-ups have also started investing in OLED technology, for example, Royole did an investment of 300 billion Japanese Yen with the help of government support.

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