Are Samsung and LG withdrawing from the LCD market one after another, is it an opportunity for domestic LED manufacturers or a starting gun for the new track?(1)

820 views admin 2020-04-29

Reuters reported that Samsung Display announced on March 30 that it has decided to end all LCD panel production in China and South Korea by the end of this year. In an interview with some media, Zheng Haorong, president of LG Display, revealed that he will close the LCD panel factory for TV production in South Korea by the end of the year. Both Korean companies will stop the production and supply of LCD panels and withdraw from competition in this market. As soon as the move came out, some people in the domestic display market cheered, but some people sounded the alarm. For the domestic LCD market, the production capacity of domestic manufacturers can quickly fill the vacancy of LCD supply, but for LED display manufacturers A new track showing technical competition.

Technology advantage and profit disappear, Samsung LG withdraws from LCD market

In the current LCD liquid crystal panel market, TCL Huaxing Optoelectronics is the world's largest LCD liquid crystal panel manufacturer with a market share of 18.8%, BOE ranked second with a market share of 17.4%, and Huike rose to third with a proportion of 13.4%. Innolux and Samsung accounted for 4 and 5 with 12.3% and 10.5% of the market respectively.

Part of the reason is that in the Chinese market, the government has good policy support and subsidies for the semiconductor industry, and the LCD panel industry is also among them. Therefore, Chinese LCD panel manufacturers have sufficient profits to lower wholesale prices and enhance their competitive advantage. On the other hand, after nearly four to five years of development, domestic LCD panel manufacturers have quickly caught up in production capacity and already have multiple high-generation LCD panel production lines. In terms of LCD technology, traditional overseas giants such as Samsung and LG have no advantage.

Therefore, due to the disappearance of technical advantages and lower profits, traditional overseas screen giants such as Samsung and LG have withdrawn from the LCD market one after another. This is undoubtedly an opportunity for domestic LCD manufacturers to further consolidate their existing market share advantages. LCD is still the main TV and many large-screen devices Screen material. However, from another perspective, Samsung's withdrawal from the LCD liquid crystal market is only a withdrawal from a low-value market. OLED screens are a new generation of display technology, and LEDs are alternative display technologies for LCDs. China's display companies cannot relax their vigilance. With more investment in scientific research, on the basis of grasping the present, we must actively invest in future display technology, and don't lose the watermelon to pick sesame seeds.

Technology and capital advantage "threat" to domestic display

With the withdrawal of Samsung this time, the LCD liquid crystal market will also become the world of Chinese companies, but in fact LCD has already had a trend of tomorrow, and LED as a substitute for LCD products, its seamless splicing, color and brightness consistency are good. Competing with LCD has already won a lot by virtue of its technological advantages. The strong replacement of small-pitch LEDs for LCDs, as well as high-end displays such as Mini LED and Micro LED, are the key to the next generation of display technology and a great opportunity for Korean display manufacturers to enter the Chinese display market in the future. This "fragrant food" has led to Korean display Manufacturers don't hesitate to smash a large amount of capital and lay an advantage in the display industry.

In fact, Samsung has also made preparations for mass production of Micro LED display technology products, and will regard 2020 as the first year of Micro LED. It is understood that in order to achieve mass production of Micro LED display technology this year, Samsung is actively looking for factories and equipment that match their requirements and investing them. On the other hand, according to multiple media reports, Samsung is already preparing for evaluation of Micro LED production equipment, and plans to share Micro LED production planning with partners.

This is a huge impact for domestic high-end LED display manufacturers. International manufacturers such as Samsung, LG, Sony, etc. display a more active layout in ultra-small pitch display, and even many traditional panel manufacturers have actively participated in this "competition for the future. The commercial war of “showing the right to speak” has developed and launched related products and channels through capital and technology to seize the market. It is foreseeable that with the continued fermentation of the trend of ultra-small pitch LEDs in the future, international manufacturers will break the current market pattern of LED small pitch Chinese manufacturers occupying more than 80% of the market share, especially in the ultra-small pitch market, international manufacturers will be divided into larger Market cake.