The Chinese pursuit continues – Korea fights to maintain dominance in OLED

For several years now, there has been a real race in the display industry. Not long ago, the dominance of Samsung and LG in the OLED segment seemed unshakeable, but today serious warning signals are appearing – Chinese companies are quickly closing the technological gap and have a desire to take over the market. Moreover, a similar situation has already occurred before in the case of LCD displays, where Koreans ultimately gave way to manufacturers from the Middle Kingdom. Could this scenario repeat itself now in the case of OLED?

Chinese companies are narrowing the technological gap

Lee Cheong, president of Samsung Display, during a meeting with journalists as part of the regular meeting of the Korea Display Industry Association, did not hide his concern. – “It is very concerning that Chinese companies are quickly catching up in the OLED segment. There is still a clear difference in technology in favor of Korea, but the Chinese are getting closer” – he said.

A similar stance was expressed by the president of LG Display, Chung Cheol-dong. During the same event, he announced that both companies (LG and Samsung) will collaborate at the industry and government level to secure their leading position in times of macroeconomic challenges and the upcoming 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 story of the LCD market, where Chinese companies (including BOE, TCL CSOT) dominated this segment due to mass production, low costs, and advanced manufacturing processes. As a result, Samsung and LG nearly completely withdrew from the production of LCD panels, while domestic companies – including Samsung Electronics and LG Electronics – began importing this type of display from Chinese manufacturers.

In the case of OLED, the situation appears different at first glance, as this technology still remains more complicated to produce and requires specialized know-how, which the Koreans have developed over the years. Nevertheless, as Lee Cheong admitted, the progress of Chinese companies is so rapid that it will be more difficult to maintain the previously comfortable distance.

BOE, TCL CSOT, and others – increasingly bold production plans

Chinese giants known for LCD production, such as BOE and TCL CSOT, have already taken their first steps in the production of OLED panels, both small and medium-sized (for smartphones and tablets), and are increasingly looking towards large formats (televisions, 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 with a focus on monitors, laptops, and, in the longer term, also televisions.

Importantly, BOE has already surpassed Samsung Display in the smartphone display segment in terms of the number of panels delivered, and Apple is increasingly willing to diversify its supplier base. According to TrendForce analysts, Samsung's smartphone panel shipments are expected to decrease by about 3.5% this year compared to the previous year.

Korean response – WOLED, QD-OLED, or perhaps another breakthrough?

To counter the Chinese offensive, Samsung Display and LG Display are focusing on the development of increasingly advanced versions of OLEDs:

• QD-OLED from Samsung is becoming brighter and increasingly energy-efficient.

• WOLED from LG is also evolving, providing ever higher image quality and greater panel lifespan.

• 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" intended for wearable devices.

In the background, there's also talk of even newer technologies such as QD-LED or MicroLED, which could completely revolutionize the market in the next few years. Samsung is already investing in the development of QD-LED, as well as trying to reduce the exorbitant production costs of MicroLED. Meanwhile, the competition – including Nanosys, Sharp, and TCL CSOT – also does not intend to miss this opportunity and is actively working on similar solutions.

Tariffs, Trade Wars, and Cooperation with the Government

Geopolitical issues and potential trade wars are also significant. Lee Cheong openly speaks about the need for cooperation with the government to secure the interests of Korean display manufacturers in the face of possible new tariffs or restrictions in the international market. – “If the television and mobile device industries are affected, we will not remain unscathed either. We will monitor the situation and work with the government to find good solutions” – emphasized the president of Samsung Display.

The Korea Display Industry Association (KDIA) has announced an increase in the number of trade experts and strengthened lobbying efforts to protect the domestic industry from the unfavorable effects of customs policy.

What’s Next for OLED Dominance?

While Samsung and LG are still seen as leaders in OLED technology, concerns are evident. As experiences with LCD have shown, the Chinese are capable of rapidly catching up technologically, and with massive investments and government support, they achieve a global production scale that allows them to dominate the market both in price and quantity.

Will a similar shift happen again this time? According to experts, the outcome of the competition will be determined by the speed of innovation implementation, readiness for new areas of application (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 gaining momentum, and companies from Korea and China will do everything to emerge victorious. As consumers, we can only keep our fingers crossed that this competition leads to lower prices 😉.

Source: hdtvtest.co.uk, biz.chosun.com, displaysupplychain.com