Welcome Expanded Tax Credits for Advanced Display Technologies
As the Korean government has designated next-generation display technologies as a national strategic technology, making display makers eligible for expanded tax credits on investment in R&D and facilities, attention is focusing on whether the move will catalyze a rebound in the Korean display industry.
Korean display makers unanimously welcomed the government's addition of next-generation display technologies to the list of national strategic technologies. The display technologies eligible for expanded tax credits include active matrix organic light-emitting diode (AMOLED), micro-LED and quantum dot (QD) nanomaterial displays.
Yet, industry insiders expressed regret that the encapsulation equipment part, which is considered a key display technology, was not included. Encapsulation is the process of sealing an OLED panel that aims to ensure its durability by protecting it against external factors.
Domestic display makers are also facing a challenge coming from Apple. In October 2022, Apple requested its suppliers to go beyond joining RE100 and attain their decarbonization goals by 2030. Samsung Display joined the RE100 in the same month. LG Display is currently the only LG affiliate that has not signed up for RE100.
“LG Display is also making efforts to get closer to RE100 in various ways, although it has not signed up for RE100 yet,” an industry insider said. “Display makers will rev up their decarbonization campaign to remain in Apple's supply chains.”