In general, Korean LCD equipment makers saw healthy revenues in 2017, according to Digitimes Research, thanks in part to a record level of export shipments to China — over 50% of the country’s total exports — which analysts predict will be crucial to the market’s success in 2018. Of the total investments in the worldwide LCD panel market, the proportion of China’s LCD equipment investments is expected to grow this year.
Of Samsung’s suppliers, AP Systems saw revenues of 1 trillion won ($923.6 million), 90% of which came from sales of laser lift-off technology for flexible OLED production, while semiconductor manufacturers Semes and SFA Engineering both saw revenues of around 2 trillion won ($1.85 billion).
Meanwhile, of LG’s suppliers, Jusung Engineering and DMS, both saw revenues of around 270 billion won ($249.4 million), and Avaco and Invenia generated about 180 billion won ($166.2 million) each.
According to the research data, Samsung and LG’s combined capital expenditure is anticipated to drop in 2018, from the 21 trillion won ($19.4 billion) spent last year, down to between 13 and 15 trillion ($12 billion to $13.9 billion). Analysts predict this will have a negative knock-on effect for Korean LCD equipment suppliers — therefore, increasing their reliance on Chinese exports.
