In the bustling world of television technology, Samsung found itself at a crossroads in 2019. The company’s display arm, Samsung Display, was to decide whether or not to begin producing quantum dot OLED (QD-OLED) TV panels. After careful deliberation, it chose to proceed with the QD-OLED production but with a more cautious pace than initially intended. Trial production was scheduled for the end of 2020, with mass production envisioned to begin by 2023.
Samsung Display took an intriguing strategic pivot, opting to convert an 8-Gen line for production instead of the initially suggested 8.5-Gen. This decision effectively focused the company’s efforts on smaller TV sizes, particularly 55 inches or less. However, the production of 77″ QD-OLED prototypes stirred confusion within the industry as it seemed to contradict their emphasis on smaller sizes.
As 2020 unfolded, the world was gripped by a global pandemic, which led to unforeseen consequences for the TV industry. Samsung Display kicked off the year by sending QD-OLED panel samples to Samsung Visual, its corporate sibling. Unfortunately, the panels were rebuffed for their unacceptably low luminance, prompting a second round of samples to be prepared for dispatch in April.
LCD panel prices in the market rode an unpredictable roller-coaster during the year. An initial surge in prices occurred when Samsung and its rival LG Display announced its plans to abandon LCD technology in favor of OLED. However, the pandemic brought fear of a global recession, which sent prices tumbling. This downturn was short-lived as global lockdowns and stay-at-home orders drove up the demand for TVs, which, in turn, drove prices back up. These unexpected shifts in LCD panel prices prompted both Samsung and LG to reconsider their plans, extending the lifespan of their LCD lines.
As 2021 dawned, Samsung found itself at the heart of conflicting reports. In a surprising turn of events, it was reported that Samsung Display planned to produce QD-OLED TV prototypes in June. These prototypes would be evaluated by Samsung Visual, Sony, and a few Chinese set-makers. This was a surprising revelation as Samsung Visual was not expected to release QD-OLED sets before 2022.
In an even more startling twist, Samsung Visual was reported to be in talks to acquire OLED panels from its competitor, LG Display. This was a move few could have predicted, yet it appeared that the low yield rate of QD-OLEDs from Samsung Display had forced Samsung Visual to look elsewhere. This unusual alliance hinted at a seismic shift within Samsung as the company seemed to affirm its commitment to OLED technology, even if it meant sourcing from a long-standing competitor.
Navigating this transitional period proved challenging for Samsung, as the company attempted to shift from LCD to OLED, particularly focusing on QD-OLED technology. The journey was fraught with hurdles, including the efficiency and lifespan of blue-emitting materials, and early struggles with production yields. However, Samsung proved adaptable, adjusting its course in response to market fluctuations and the unexpected impacts of a global pandemic. The internal dynamics between Samsung Display and Samsung Visual further complicated matters, but it was clear that the company as a whole was committed to exploring the potential of OLED technology, regardless of the source.
At the end of 2021, Samsung announced a major reorganization of the company’s leadership structure, and its product divisions, replacing the three heads of its IT, mobile and consumer electronics units with Han Jong-hee, the former of Samsung’s visual display business, as CEO. As it turned out, 2022 was a watershed of sorts, with a post-pandemic hangover hurting sales and driving prices down across the board.
What Display Daily Thinks
Chinese TV makers are plagued by geopolitical sanctions and dampened demand. Backed by their government, they are opting to fight back and looking to expand upon their dominance in LCDs with more investment in OLED, and an acceleration in the capacity to compete with Samsung and LG. All while looking at how to create an acceleration of MicroLED development. Samsung and LG now find themselves forming a Korean front for battle, backed by their government too, and equally facing political and economic pressures.
So, 2023 is a time for drawing lines in the sand for two nations competing for dominant market share in TVs. Expect Samsung to make a lot of decisions that you wouldn’t have expected it to make a few years ago. Whether it is XR devices, mobile, IT products, TVs, or display panels, the company seems to be leveraging its new structure to be more decisive, and less dogmatic about its approach.
It probably means that whatever sells, wins, and whoever can help Samsung win is its best friend. Enmities and fears of historical foes can wait for now. Both Samsung and LG can concentrate on a national pride .that matches their Chinese competitors
You have to ask yourself, does this change the outlook for QD-OLED’s long-term? And, how does it impact the timelines and schedules for a shift to MicroLED? And, finally, what impact will Apple have on the market based on its decisions about future display manufacturing? Looking back, over the last three years of positioning and investment, it just might be that we won’t know until next year, when the dust settles from this annus horribilis for displays.
