The Status Quo Of Samsung And Lg In Panel Factory: Patent Litigation, Survival Under The Competition Package Of Chinese Peers

- Oct 24, 2019-

With the rapid growth of the global oled display market, south korean panel makers are under pressure not only from patent lawsuits but also from fierce competition with chinese manufacturers, according to business korea. 


Reported that the current dominant oled market is the two major korean manufacturers are not slack. In july, lg display announced plans to add 300 billion won ($2.53 billion) to its 10.5 generation oled production line in pozhou. Separately, samsung's display announced on october 10th that it would invest 1.31 trillion won ($11.05 billion) in the production of large oled panels. 


While south korean panel makers have a strong investment in oled, chinese panel makers are also aggressively targeting the market. On september 27th, for example, huike's 8.6-generation ultra-high freshness display production line, with a total investment of 32 billion yuan, officially started construction in liuyang economic development zone (hi-tech zone). 


LCD display


The project will focus on ultra high-definition display 4k8k10k white oled panel after commissioning. In addition to the pressure for market share, South Korean panel manufacturers face more and more intense patent litigation. Samsung monitors and lgd are facing patent lawsuits from solas oled, an irish factory, recently reported. Solas also filed patent lawsuits against samsung electronics, lg, apple, sony, google and dell over oled panels.

 

Patent lawsuits in the oled market have placed a heavy burden on south korean firms committed to transforming the oled panel. Plans to raise money to invest in a new generation of monitors will also face difficulties for the deteriorating lcd. 


In addition, the Chinese panel manufacturers catch-up is to make Han factory head big. At present, the lcd market share of chinese panel factories has surpassed that of korean companies, while chinese manufacturers are also expanding their investment in oled panels. While samsung still has a high market share in smartphones, chinese panel makers show clear signs of growth every quarter, the report said. 


LCD display

Meanwhile, both samsung and lg saw a decline in market share in the second quarter, according to ihs markit, while china's beijing-east display increased its market share from 8.5 per cent to 11.5 per cent. Other chinese companies, such as shanghai and glow optoelectronics, vicino and tianma microelectronics, have increased market share. 


Apple, on the other hand, is currently testing oled panels made by chinese companies, including beijing and eastern, with market share likely to rise further. Business korea concludes that competition between south korean and chinese monitors is expected to intensify in the future smartphone oled market, and that the road for south korean monitors is a long and tortuous one.