China, Japan and South Korea OLED Competition officially enters a new stage

OLED 2019 shows the market, really lively. Especially at the beginning of the year, Huawei and Samsung folding mobile phone products competition, behind the BOE, Samsung two OLED panel manufacturers of the “latest creation”, in the public opinion set off a wave of “OLED” industry boom. But the real OLED industry drama is not innovation in mobile products, but a new investment to “extend” to the larger market. The industry expects the focus of market competition to soon enter a new phase of the “OLED” track.

Targeting large-size OLED efforts

In October, Samsung announced plans to develop and produce 13.1 trillion won (about $11 billion) QD-OLED TV panels. By 2025, Samsung plans to build two QD-OLED production lines in South Korea, with the first production line to start production in 2021. Samsung was once a decade-long monopoly on small-size OLED products and is the only global OLED panel company to make “massive money”.

Samsung’s technical capabilities in large-size OLED should not be questioned, thanks to the technical accumulation of long-term OLED small-size products. And as the world’s largest color TV brand, only its own demand for large-size OLED products is astronomical.

China, Japan and South Korea OLED Competition officially enters a new stage

On August 29th LG Display officially announced that its 8.5-generation OLED panel production line in Guangzhou, China, had been put into operation. The production line will expand its capacity from the current 60,000 substrates per month to 90,000 pieces. Even the current 60,000 substrates are equivalent to the sum of LGD Korea’s large-size OLED panel lines. Lg is also building a 10 in South Korea. 5 generation OLED large size line.

It is worth mentioning that LG is currently the world’s only commercial production of large-size OLED panel son. However, due to a series of technical constraints, large-scale OLED projects have been in a loss-making state for a long time. According to research data, the global OLED TV shipment growth in 2019 is weak, some markets have shrunk: the main reason is the rapid reduction of large-size LCD, while OLED large-size products supply is tight – especially LGD supply of more 65-77 inches large-size OLED, This results in a decrease in the overall number of cuts of existing capacity.

In the OLED market, the leading nature of the Korean Industrial Corps is unquestionable. But companies in Japan and china are also striving for this “strategic commanding height”.

For example, on November 25th, the world’s first printed OLED production line was inaugurated in Japan. JOLED will launch a revolution in the medium-sized OLED sector, said the president. The production line substrate size of the Nengmei plant is G5.5 (1,300×1,500mm) and has a production capacity of 20,000 pieces per month. The introduction of inkjet printing technology will reduce the cost of large-scale smaller size.

The “re-emergence” of Japanese display panels with printed OLED is almost the “only chance” that the Japanese display industry can now seize. As the birthplace of modern flat panel display and semiconductor display technology, the persistence of The Japanese industry comes not only from technological self-confidence, but also from historical feelings.

Also in November, the world’s first 8.6-generation OLED panel production line project in Changsha was inaugurated. The day will officially enter the piling stage, the start of construction. It is the latest project by The Domestic Panel’s later third-largest, HKC. Previously, HKC has built four 8.6 generation LCD panel production lines. As a start-up panel enterprise, it is inevitable to strive to establish a career in the new large-size display technology.

It is worth mentioning that HKC before the OLED panel enterprises, either focused on small and medium-sized products market, or at least in small and medium-sized products have a production line of the brand. HKC is currently the only enterprise that does not go through the small and medium-sized stage and directly cuts into the large-size OLED panel market. This also reflects the “time window opportunity” sense of urgency of Huike on the OLED project.

In addition, the domestic ranking of the first and second BOE and chinastar Optoelectronics, also interested in large-size OLED. BOE invested 1 billion yuan in Hefei to build the printing technology OLED production experimental facilities. Linked to BOE has invested in 4 steaming technology 6 generation OLED line, for small size demand market, its printing technology preparation is obviously more to challenge the future of large-size OLED applications. Huaxing Optoelectronics, not only has built printing OLED experimental facilities, but also publicly announced that in its second 11th generation LCD line in Shenzhen, the planning part of the printing large-size OLED production capacity.

In summary, the appeal of large-size OLED has never been greater. The “technically conservative Taiwan Legion” among the industrial elite has been “involved”. The market competition for large-size OLED is changing from the research and development of “technical route” to the practice of “capacity building”.

Large-size OLED is a structural innovation in industry demand and supply

It is no surprise that large-size OLED sits at the heart of the industry in 2019. Industry experts pointed out that in 2019 the traditional liquid crystal display products further “surplus”, small-size OLED products have also entered the “excess” stage. This has led to the industry’s highest level of technological competition, shifting to new targets.

Large-size liquid crystal products, with BOE and Huaxing Optoelectronics invested in the construction of two 10.5/11 generation lines, as well as HKC and other brands 8.6 generation line production, the market structure is experiencing unprecedented “capacity expansion.” And it is clear that large LCD TVs are more expensive than small and medium-sized TVs, making it difficult to catch up with the supply growth of hundreds of billions of yuan in investment. As a result, over the past three years, Large-size LCD products from Korean panel companies have been in the process of “de-capacity”.

China, Japan and South Korea OLED Competition officially enters a new stage

OLED, on the other hand, has increased sales in the small-size, mobile phone market. So that in 2019 there will be a large-scale thousand-dollar machine OLED mobile phone products. This will further squeeze the market share of mobile screens on traditional LCD lines: these surplus LCD production lines are either shut down directly or switched to large LCD panel products. THE SUBSTITUTION EFFECT OF OLED ON LIQUID CRYSTAL FURTHER AGGRAVATES THE OVERSUPPLY OF LIQUID CRYSTAL DISPLAY PRODUCTS.

And OLED in the small and medium-sized accelerated penetration is still in the “in progress.” For example, the four OLED 6 generation lines that BOE has been put into and built, for example, will not enter the full production capacity explosion stage until late 2020, or early 2021. This is determined by the product line investment cycle, the technology climbing cycle and the market import cycle.

According to statistics, only the domestic market 6 generations of OLED panel line investment scale has been as high as 10, the investment amount of nearly 400 billion yuan. When all these production lines are put into operation in 2021, they will have a monthly production capacity of up to 1 million square meters. If all are used to manufacture mobile phone displays, the total capacity is equivalent to 70 million mobile phone screens per month, according to the BOEG6 flexible OLED production line, which can cut 190 6.47-inch module products per bus substrate.

And the new small and medium-sized OLED project not only includes mainland enterprises, Japan and South Korea taiwan enterprises are also increasing the corresponding investment. Because of the huge capacity of these projects under construction, investment in the small and medium-sized OLED market, represented by the 6generation line in the short term, has been “difficult to expand significantly”.

“Large LCD, small size OLED, there is a lot of market pressure. “For example, BOEOLED mobile phone shipments are expected to reach five times or more this year. At the same time, BOE’s 10.5 generation line shipping capacity has at least doubled. This is in sharp contrast to the highly saturated pattern of color TV, mobile phones, PCs and other markets. Moreover, after mainland enterprises made great efforts to build OLED 6 generation line and LCD 10.5/11 generation line, Taiwan Province, South Korea, Japan and other enterprises invested “slow down” the reasons. News reports said that the Taiwan-Japan cooperation in Guangzhou 10.5 generation line LCD plant production time has been delayed.

However, market pressure sits not to “reject the competitive relationship between firms”. The more pressure there is, the more companies have the “necessity” to break through: large-size OLED and printing technology, it becomes a “temporary blank”, but looks infinitely beautiful “potential market”.

Moreover, whether it can retain the position of the future leader in the large-scale display industry, printing and large-size OLED projects are “decisive”. LG, Samsung, Huike, JOLED, BOE, Huaxing Optoelectronics and so on are “knowing.” As a result, large-scale OLED investment has accelerated since the second half of 2019.

However, in front of large-scale OLED projects, manufacturers also face huge cost problems. For example, according to Display Supply Chain, a square meter of OLED panel costs about $95. Samsung’s new QD-OLED architecture reduces the cost to about $26 per square meter of QD-OLED panels by reducing the 22-story structure of LGD’s white-light OLED products to 13 storeys. This huge cost reduction possibility, but also manufacturers to develop new technology, eager to try the root cause: LGD’s first-mover advantage is limited by cost, who is the first to break through the cost bottleneck, who can become the next generation of color TV leader.

“The jewel in the crown is dazzling. “That’s the appeal of large-size OLED panels. Industry enterprises in other market segments of increased competition, facing absolute or relative technology and overcapacity background, breaking through large-size OLED can break through their own development bottlenecks. Industry insiders expect a massive big-size OLED panel investment storm to be on the way in the next three years. The OLED competition in China, Japan and South Korea will also enter a new phase.

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