Samsung Korea: “Withdrawal from LCD for TV” Background: China, subsidy weapon / price offensive
Samsung Korea:
Late 2000s:
Demand for LCD panels for TVs and smartphones has expanded rapidly since the late 2000s.
Initially, Samsung / LG Koreans strengthened the FPD development / production system with their own products.
After a series of large-scale investment of several hundred billion yen per year, the Japanese companies such as Panasonic, Sharp, and Sony have been separated.
Mid 2010s:
The situation has changed completely since the mid-2010s.
Chinese companies are rapidly emerging in the LCD panel field.
Chinese manufacturers have launched a price offensive with a large amount of government subsidies and support from public financial institutions.
Top of China: (BOE)
BOE’s total investment at the end of 2017 was RMB45.8 billion (¥ 700 billion)
Of this amount, approximately 25 billion yuan was funded by government-affiliated companies and investment funds.
Due to the offensive of Chinese manufacturers, FPDs have fallen into oversupply and panel prices have fallen.
According to IHS Markit, a UK research firm, the price of TV panels for 2019 dropped by 30 to 40% compared to the previous year.
October 2019:
Samsung has indicated a policy to switch to a production line of its own improved “quantum dot (QD) organic EL”.
QD OLED has been adopted as an in-house TV in place of LCD.
Samsung has already shifted to the production of smartphones / small / medium-sized panels / organic EL.
Sales of high-value-added products such as iPhone have also come on track.
LG Display: Oligopoly
The large OLED market for TVs is currently in an oligopoly with rival / LG displays.
LG organic EL panels are also used in organic EL TVs from Japanese manufacturers such as Sony and Panasonic.
Sharp, who has been particular about LCD panels, also enters the organic EL TV that uses LG.
Therefore, it is not easy to break LG’s stronghold.
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