Policy Boosts Panel Industry Development OLED Or Welcomes New Opportunities

- Sep 27, 2018-


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A few days ago, the General Office of the People's Government of Guangdong Province issued a notice on the implementation plan for the implementation of the new digital home initiative to promote the application of 4K TV networks to industrial development, which caused widespread concern.

The notice mentioned that in recent years, with the continuous advancement of electronic information technology, 4K TV has developed rapidly on a global scale and has gradually become an important integration platform for connecting homes and information sources.

According to estimates, 4K TV network applications, if popularized, will drive the relevant industries in the province to achieve an output value of more than 600 billion yuan by 2020, and drive related investment such as broadband construction to more than 100 billion yuan; among them, the output value of 4K copyright-level content industry will reach 100 billion yuan. The output value of the hardware manufacturing industry reached more than 300 billion yuan, and the income from 4K related businesses reached 200 billion yuan.

It is worth noting that the notice also mentioned that “supports the development of new display industries in Guangzhou, Shenzhen, Huizhou, Foshan, etc., and accelerates the 11th generation line of Huaxing Optoelectronics, the OLED project of LG, and the 10.5 generation line of Foxconn. The construction of major projects for generations of LCD panels has expanded and improved the industrial chain around major projects.” LG Display, namely LG Display (hereinafter referred to as LGD). As a result, LGD’s rumors of the OLED project in Guangzhou quickly spread in the market.

As the next-generation display technology, OLED has the advantages of self-illumination, colorful color, foldable and curved, etc. However, from the data point of view, the market share of OLED TV is still small. Qunzhi Consulting expects that the sales of OLED TVs in China will reach 250,000 units in 2017. In 2016, China's color TV market has sold more than 50 million units.

Liu Buchen, an observer in the home appliance industry, pointed out that the only factor that restricts the development of the OLED TV industry is the last one: the OLED panel supply is tight. This means that once this bottleneck is broken, the OLED industry will develop very fast.

Earlier, Lv Xiangde, president of LGD's OLED business unit, publicly disclosed to the media: "The possibility of producing OLEDs in Guangzhou is not ruled out." However, in response to this rumor, LGD insiders told the author that, first of all, the document has been adjusted, and further, we have not released any relevant information.

In the eyes of the industry, the Korean government is not allowed to export patent technology to foreign countries. In addition, LGD itself may not really make up its mind to establish a large-size OLED production line in China. On the one hand, LGD's business in China is shrinking. It is not always possible to quickly build a large-size OLED production line. On the other hand, compared with large-size OLED production lines, the demand for small-size OLED screens is even more scarce. The market outlook is better.

In the field of OLED, South Korea's Samsung and LG dominated. Samsung is good at small-size OLED panels, while LG is known for its large-size OLED panels, and LG's OLED strategy also carries its dream of surpassing Samsung.

In China, LG teamed up with Skyworth to promote OLED, including Skyworth's latest Wall Paper, which is also technically compatible with LG.

Liu Weizhi, president of Skyworth Group, told reporters: "At present, Wall paper is the first in China, and we are the second in the world. The first one is LG. Skyworth is a complete machine manufacturer. We have always been committed to working with the upstream. Cooperation and joint development, our most cutting-edge technologies, including OLED, are currently jointly developed with LG, and we are also co-developing with BOE in China. We believe that the development of the two companies is equally important."

According to Liu Yizhi, first of all, Wall paper is one of its characteristics, but its thin and thin LCT is not the same, Wall paper can be attached to the wall, the LCD can not be attached to the wall, this It is a technical difference; secondly, there is artificial intelligence, using artificial intelligence to control the TV, this is not the same as before; in addition, LCD, regardless of its visibility and color, is incomparable with OLED.

In contrast, Samsung is betting on small-size OLED panels. Data show that in the third quarter of 2016, global shipments of AMOLEDs for smartphones reached 101 million, of which Samsung shipped 99.7 million. In the fourth quarter of last year, Samsung’s display business operating profit surged by 347% year-on-year. It is not difficult to understand why the Galaxy Note7 exploded, but Samsung's full year 2016 operating profit will increase by 10.7%.

With the news that iphone8 will use OLED screens this year, it will undoubtedly drive a large number of mobile phone manufacturers to follow the trend of using OLED screens. However, in this context, there is a saying that Apple wants to use the advantages of orders to lock OLEDs, thereby suppressing domestic mobile phones.

At present, OPPO, vivo, Gionee and many other models use OLED screens. According to Jin Li insiders, the 2017 curved screen Samsung only supplies Jin Li and OV, while the 5.7-inch maximum screen only supplies Jin Li. Samsung's commitment to Jin Li is to provide up to 1 million pieces. Samsung's order for high-end screens is different from the current competitive landscape on the market.

According to its statement, Jin Li is a key support manufacturer of Qualcomm and Samsung. The industry chain giants such as Qualcomm and Samsung are giving unique support to Jin Li through different forms.

Another mobile phone manufacturer, vivo, said: "Our x series and x play series are in use. Although it still purchases OLED panels with Samsung, it does not affect the launch of new products. First of all, we do not use all products. OLED screens; secondly, our supply chain is laid out in advance and will not be temporarily purchased."