“Chinese companies originally focused on assembling modules and sets, but over time they’ve climbed the display value chain to full LCD production—and now they’re aggressively pursuing OLED manufacturing,” observes Charles Annis, senior director at IHS Markit.
“BOE, for example, produces high volumes of almost every size and type of LCD, and is shipping millions of flexible AMOLED smartphone panels monthly from its B7 Chengdu factory. On top of that, the company is either producing or has plans to pursue alternative technologies, such as OLED on silicon, electrophoretic displays (EPDs), white OLED (WOLED) and inkjet-printed OLED TVs and augmented reality/virtual reality displays. BOE’s goal is to lead not only in display production, but also in technology.”
China’s regional rivals focus on AMOLED
Korean and Taiwanese panel makers are facing challenges trying to compete with the overwhelming capacity advantage that China now possesses and are rearranging their businesses to concentrate on unique and higher-end applications. For Korean suppliers, this means focusing on AMOLEDs, where they still maintain considerable advantages in both capacity and manufacturing technology.
Samsung still holds a 70 percent share of mobile AMOLED capacity, and is expected to produce almost 90 percent of all non-TV applications in 2019. This compares to BOE’s current 13 percent of capacity and 5 percent of production.
Even in 2023, Samsung is forecast to maintain a 43 percent share of AMOLED capacity, while BOE will rise to 21 percent. LG Display remains the only company to mass-produce OLED televisions. Even with many demonstrations by other panel makers, none are expected to commercialize their OLED TV technologies before 2021 at the earliest.
IHS Markit - www.ihsmarkit.com