Wednesday, November 13, 2019
China Accounts for Half of Global LCD TV Panel Market
Chasing Korea in OLED Market
China Accounts for Half of Global LCD TV Panel Market
  • By Michael Herh
  • September 23, 2019, 09:25
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LG Display's 8.5th-generation LCD production plant in Paju, Korea

Chinese companies’ shipments of large LCD TV panels are expected to surpass 50 percent of the world’s total for the first time. Industry watchers say Chinese companies will soon threaten Korea in the organic light emitting diode (OLED) panel market.

Chinese display makers' share of the world LCD TV panel market in terms of shipments will reach 50.2 percent in the fourth quarter of this year, up 5.2 percentage points from the second quarter (45.0 percent), market researcher IHS Markit said on Sept. 21. This year, the percentage is expected to exceed 50 percent for the first time.

Chinese display makers' LCD TV panel market share was in the low 30 percent range in the first quarter of 2017, but it has continued to grow. In contrast, the share of Korean companies has been falling. LG Display and Samsung Display accounted for a combined 35.9 percent of the LCD TV panel market in the first quarter of 2017, but their share is expected to stand at only 27.6 percent in the fourth quarter of this year. Recently, LG Display and Samsung Display are restructuring their LCD businesses due to a strong offensive from Chinese display makers. Their gap with Chinese companies is highly likely to widen.

By company, China's BOE took the No. 1 position with an 18.2 percent share in the second quarter of this year and LG Display ranked second with 16.3 percent. In terms of sales revenue, LG Display ranked first with 20.8 percent and BOE second with 17.0 percent.

Korean companies are in a hurry to shift their business focus to OLED panels, but Chinese companies are in hot pursuit of them. BOE has already overtaken LG Display in the small- and medium-sized OLED panel market and is threatening Korean companies through large-scale investment.

In fact, LG Display is considering shutting down its 4.5th-generation small and medium-sized flexible OLED production line E2 in Paju, Korea. Most competitors produce small and medium-sized OLEDs in a 6th-generation line. An LG Display official explained that the company was considering adjusting several production lines including those for small and medium-sized OLEDs in consideration of operational efficiency.