China’s lead over Korea in the display industry is likely to expand as 12 Chinese display manufacturers will set up a total of 38 new factories, 19 for large panels and another 19 for small and mid-sized panels, by 2022. LG Display and Samsung Display, the only two Korean display manufacturers, are expected to have fewer than 20 new factories in the same period.
“China’s display market share is expected to reach 58% in 2023," said David Hsieh, a director at IHS Markit during the Korea Display Conference 2018 held at El Tower, Yangjae-dong, Seoul on Nov. 6. “Its market share will be overwhelming number one and more than double that of Korea."
Now China has slightly more display production capacities than Korea, but the gap between the two will widen later. "Some analysis says that China is concentrating only on mid- and low-priced displays, but that is not true," Hsieh said. "Chinese display makers are developing the latest technologies such as OLEDs and penetrating the market quickly."
IHS Markit diagnosed that Chinese display makers were putting pressure on their Korean competitors while rapidly expanding state-of-the-art factories. The 12 manufacturers, including BOE, CSOT, CEC Panda, HKC, CHOT, Tianma, and Ever Display, will secure 19 factories for eighth- and 10.5th-generation large panels and another 19 for 5.5th- and sixth-generation small- and medium-sized panels.
"China is waging a price war in the low panel market. But if and when they take control of the display market, they will set panel prices at their discretion. Korean companies should continue to decisively invest in new tech
businesskorea.co.kr
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