What They Say
The Korea Herald reported from a seminar in Seoul last week that Yi Choong-hoon from UBI Research that although there is some demand for large OLEDs for TVs, monitors and laptops, there is uncertainty over investment plans by LG Display (LGD) and Samsung Display. LGD is expected to make a loss this year, Yi said, and will have limited cash for new developments as it converts an older LCD line in Paju for OLED production.
Samsung, on the other hand, is looking for a faster return on investment under Samsung’s Vice Chairman Lee Jae-yong, with investments with a slower payback than three years not being pursued.
“In the next two or three years, Korea’s display panel will be hit hard by Korea’s focus on chip industry,” Yi said.
The article quotes Kim Un-o, an analyst at IBK Securities, as saying that revenues for Samsung Display will fall by 2.3% in Q2, with profit falling by 3.2%. LGD’s profits are expected to decline by 64% according to an analyst consensus by market intelligence FnGuide.
What We Think
The article forecasts that BOE may have an impact on large OLED, but I’m not so sure it will happen quickly. The analyst feels that one reason for the reduction in investment is a switch to more focus on semiconductors in Korea.
UBI Research has it own notes on the event here. (BR)
