Ignacy Giżyński
The Chinese chase continues – Korea fights to maintain dominance in OLED
For several years now, the display industry has been in a real race. Not long ago, the dominance of Samsung and LG in the OLED segment seemed unshakeable, but today serious warning signals are emerging – Chinese companies are quickly closing the technological gap and have a hunger to take over the market. Moreover, a similar situation has occurred before with LCD displays, where the Koreans ultimately gave way to manufacturers from the Middle Kingdom. Could this scenario repeat itself now with OLED?
Chinese companies are closing the technological gap
Lee Cheong, the president of Samsung Display, during a meeting with journalists at the regular gathering of the Korea Display Industry Association, did not hide his concern. – “It's very worrying that Chinese companies are quickly catching up in the OLED segment. There is still a clear technological advantage for Korea, but the Chinese are getting closer and closer” – he said.
Similar views were expressed by LG Display's president, Chung Cheol-dong. During the same event, he announced that both companies (LG and Samsung) would collaborate at the industry and government level to ensure their leading position in times of macroeconomic challenges and the impending expansion of new technologies such as artificial intelligence (AI), mobile solutions, and virtual reality (VR).
Is there a repeat of the LCD market?
The current situation in the OLED industry brings to mind the history of the LCD market, where it was Chinese companies (including BOE, TCL CSOT) that dominated this segment thanks to mass production, low costs, and advanced manufacturing processes. As a result, Samsung and LG have almost completely withdrawn from LCD panel production, and domestic companies – including Samsung Electronics and LG Electronics – have started importing this type of display from Chinese manufacturers.
In the case of OLED, the situation appears to be different, as this technology remains more complex to produce and requires specialized know-how, which the Koreans have been developing for years. Nevertheless, as Lee Cheong pointed out, the progress of Chinese companies is so rapid that it will be harder to maintain the comfortable distance that has existed so far.
BOE, TCL CSOT and others – increasingly bold production plans
Known for LCD manufacturing, Chinese giants like BOE and TCL CSOT have already taken their first steps in the production of OLED panels, both small and medium (for smartphones and tablets), and are increasingly looking at large formats (TVs, monitors).
BOE has announced a multi-billion dollar investment in a new 8.6G line dedicated to the production of large OLED panels.
TCL CSOT is developing inkjet printing technology for producing high-efficiency OLEDs at lower costs. However, this is just the beginning – the company plans to gradually scale up production, primarily for monitors, laptops, and eventually also for TVs.
Importantly, BOE has already surpassed Samsung Display in the smartphone display segment in terms of the number of panels supplied, and Apple is increasingly eager to diversify its supplier base. According to analysts at TrendForce, this year, Samsung's panel shipments for smartphones are expected to decrease by about 3.5% compared to the previous year.
Korean response – WOLED, QD-OLED, or maybe another breakthrough?
To counter the Chinese offensive, Samsung Display and LG Display are focusing on developing increasingly advanced versions of OLEDs:
QD-OLED from Samsung is becoming brighter and more energy-efficient.
WOLED from LG is also evolving, providing increasingly higher image quality and greater panel longevity.
Both companies are also working on innovations such as transparent or flexible panels (so-called rollable, foldable), and LG Display is even experimenting with the concept of "wearable OLED" designed for wearable devices.
In the background, there are also talks of even newer technologies, such as QD-LED or MicroLED, which could completely revolutionise the market in the coming years. Samsung is already investing in the development of QD-LED and is trying to reduce the horrendous costs of MicroLED production. Meanwhile, competitors – including Nanosys, Sharp, and TCL CSOT – also have no intention of missing this opportunity and are actively working on similar solutions.
Tariffs, trade wars and cooperation with the government
The geopolitical issues and possible trade wars are significant. Lee Cheong openly talks about the need for cooperation with the government to secure the interests of Korean display manufacturers against potential new tariffs or restrictions in the international market. – "If the TV and mobile device industries are affected, we too will suffer the consequences. We will monitor the situation and work with the government to find good solutions." – emphasised the president of Samsung Display.
The Korea Display Industry Association (KDIA) announced an increase in the number of trade experts and strengthened lobbying efforts to protect the domestic industry from the adverse effects of trade policy.
What’s next for OLED dominance?
Although Samsung and LG are still seen as leaders in OLED, concern is evident. As demonstrated by experiences with LCD, the Chinese can quickly catch up on technological gaps and, thanks to massive investments and state support, achieve a global production scale that allows them to dominate the market in terms of price and quantity.
Will a similar shift occur this time? According to experts, the outcome of the competition will be determined by the speed of innovation implementation, readiness for new application areas (e.g. automotive, XR devices, laptops), as well as geopolitical factors. For now, one thing is certain: the fight for the future of OLED is picking up pace, and companies from Korea and China will do everything to come out victorious. And we, as consumers, can only keep our fingers crossed that this competition translates into lower prices 😉.
