Korean enterprises switch to OLED embrace, domestic manufacturers welcome opportunities

The future of display technology remains a hot topic, and the debate is far from over. According to recent reports, South Korean manufacturers are shifting their focus toward OLEDs. While the OLED boom is still in progress, it doesn't necessarily mean the end of LCDs. In fact, many people believe that LCDs still have a strong market presence, especially in China, where demand for LCD panels remains robust. In the second half of the year, the global color TV market saw a slight slowdown. However, recent developments have sparked renewed interest. The moves by two major South Korean companies suggest that they are accelerating the phase-out of smaller LCD panels and moving toward OLED screens. Industry analysts often claim that LCDs are reaching the end of their lifecycle, but the reporter isn’t entirely convinced. ![Korean enterprises switch to OLED embrace, domestic manufacturers welcome opportunities](http://i.bosscdn.com/blog/27/55/81/0-1G12Q631301a.png) According to the reporter’s understanding, LG Display recently shut down its 5th generation P4 factory in Gumi. This follows the closure of the 3.5th generation P2 factory, and it's expected that the 4th generation P3 factory will also be closed before the end of the year. LGD has stated that it won’t invest in new LCD production for now, and if high-end customers require high-resolution products, only small-scale production will be carried out. LGD plans to invest $18.08 billion in the OLED industry by 2020. This includes facilities such as P10 and E6 in Paju, E5 in Gumi, and an OLED plant in Guangzhou, China. Samsung Display, once a rival to Samsung, has also taken similar steps. It has closed several LCD factories, including a 7th generation line and two 5th generation lines, while building large-scale OLED production facilities in South Korea. The company is investing $8.8 billion this year to expand OLED production and convert some LCD lines into OLED ones. These actions by the two leading panel manufacturers are seen as indicators of the industry's direction. OLEDs offer advantages like self-luminous properties, true color, zero latency, infinite contrast, ultra-thin design, and flexible displays. These features make them seem superior to LCDs. However, the reporter believes it's still too early to declare the end of LCDs. First, LCDs still dominate the color TV market. Second, even though OLEDs have potential, they are not yet cost-effective or scalable enough to fully replace LCDs. Third, display technology is not limited to just OLEDs and LCDs—other technologies like laser displays are also emerging. Finally, there is still strong demand for LCDs in small-sized applications. The shift by Korean manufacturers toward OLEDs may not mark the end of LCDs, but it does present new opportunities for domestic manufacturers. For example, when Samsung closed its 7th generation factory last year, it caused a shortage of 40-inch TV panels. Similarly, LGD’s recent closures are likely to change the supply dynamics, benefiting companies like AUO, Innolux, Caijing, and Huaying, which continue to thrive in the small and medium-sized panel market. BOE, another key player, focuses on 55-inch TV panels and small-size OLEDs. Meanwhile, other manufacturers like AUO, Innolux, Caijing, and Huaying maintain their presence in the mid-sized panel segment. The evolution of display technology is inevitable, but change takes time. Even though LCDs became mainstream years ago, CRTs still exist in certain markets. Similarly, while OLEDs may eventually replace LCDs, the transition won’t happen overnight. Other technologies, like laser displays, are also vying for a place in the market. Additionally, LCDs themselves are continuously being upgraded, helping to extend their lifespan in the industry.

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