Samsung's Double-Track Business Strategy LCD Investment Slowdown Taiwan Factory Benefits

- Jul 25, 2018-


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Samsung Electronics Co., Ltd. said on the 22nd that in order to meet the global demand for large-size TV surges, it will adopt a "dual-track" business strategy to produce quantum light-emitting diode (QLED) and micro-light-emitting diode (Micro LED) displays. Samsung Electronics believes that the emergence of new TVs with more intelligent functions has made it play a bigger role in the daily life of users, and current global users have shown a growing demand for large-size TVs.

Samsung Electronics cited data from industry research firm IHS Markit. This year's 75-inch and larger TVs accounted for 5% of global TV sales, up 80% year-on-year.

"A 50-inch TV, which used to be considered a large-size TV, is now considered to be average," Samsung Electronics said. In terms of the Korean market, sales of 60-inch models in 2018 are expected to exceed 50-inch.

The South Korean technology giant claims that it had a 51% market share in the large-size TV market of 75 inches and above worldwide. This year, its share of the large-size TV market has further expanded, reaching 58% in the first quarter of this year.

Samsung said it has more than 90% of the large-size TV market in South Korea's 75-inch and above.

"Based on the advantages of quantum dot technology, we plan to introduce more models, including 75-inch, 82-inch and 88-inch models, and expand our share of the large TV market," Samsung Electronics said. "We will strengthen by surrounding The dual-track strategy of QLED TV and MicroLed shows our leadership in the high-end market."

The industry believes that Samsung's aggressive attack on advanced panel technologies such as QLED and Micro LED should slow down LCD-related production capacity and investment. At present, AUO, Innolux and other Taiwan panel manufacturers are still in the LCD panel, Mini LED and other products are mainly engaged in wearable applications, accounting for a small proportion. Once Samsung is unable to take into account LCD development, it will be a good thing for AUO and Innolux.

Samsung is preparing to mass-produce Micro LED TVs for commercial and family entertainment and music. It is scheduled to be launched in September, mainly targeting hotels, shops, stadiums, museums, convention centers and luxury homes.

Samsung will also launch a Micro LED high-end TV for general home users next year.

Samsung executives said the new TV, called The Wall Luxury, is only 3 centimeters thick and may fall in price after mass production begins.

The Korean technology giant said that as television functions become smarter and play a bigger role in the daily lives of users, users around the world are showing signs of increasing demand for larger displays.