What Display Daily thinks: The Korean display industry fights its battles with Chinese competitors openly in the Korean press. You can gauge the temperature of the threat by the assertions being made and the commentary of Korean journalists, often fueled by sources within Samsung and LG. IFA 2024 is taking place in Berlin right now and it seems to have spooked the Korean manufacturers, with acquisitions about TCL QD TVs not having any QDs suggesting that things are getting more heated in the rivalry. TCL is the major sponsor of IFA this year.
It may seem anecdotal but it is telling that Samsung has upped the damages claim against Toptec to such a great extent. It either signals to the market and its Chinese competitors that Samsung is very serious about protecting itself or it lays the groundwork for any potential hits the company may be taking from the competition. It is easier to blame any shortcomings on unfair practices by the competition, particularly if you have a court case that backs up your claims, than it is to feel overwhelmed by the extent of competition. TCL and Hisense are flexing a lot of muscle in Europe and IFA 2024 is a turning out to be a showcase of their growing power in the region. That has got to hurt.
Ultimately, none of the coverage in Korea’s press addresses any possible answers for Korea’s display industry. The Koreans are unhappy with the level of state support for Chinese manufacturers, and want the Korean government to do more. It is almost a desperate plea right now. I don’t doubt that is a legitimate concern. The more esoteric technology questions like QD or not QD may just pass over most consumers heads and not make any dent in actual sales. It’s hard to see how Samsung or LG can slow down the increasing encroachment by TCL and Hisense, and other Chinese competitors. At IFA, these companies are showing products that suggest they are not just budget product makers, that they have the means to compete in the premium segment of the market.
TCL has its 115-inch QD-MiniLED TVs, AI-powered smart home energy systems, and paper-like smartphone displays, positioning itself as a leader in the large-screen TV market.Hisense is promoting its 163-inch MicroLED TV, smart home appliances, and gaming-focused TVs with enhanced features, such as high refresh rates, and getting noticed for it. There’s also Honor, which introduced its foldable smartphone, the Magic V3, directly challenging Samsung’s foldable series, taking a bold marketing approach by mocking Samsung’s chunkier design.
From the outside, it looks like the Chinese companies are holding their own, or even surpassing, their Korean rivals on technology. For their part, Korean companies like Samsung are looking to debunk those claims in hopes of maintaining their perceived advantage. It looks like the gap is closing and it may not matter how you fight it on the details, it won’t make much difference if your market share continues to get eroded. It might be interesting to see how this all pans out for the suppliers of materials, and equipment to companies in Korea and China, mostly out of Japan and the West. They might end up getting caught in the middle having to support their customers on both sides, assuring everyone else that they are all equally capable. What else can they do? That’s a bind as accusations fly and sides have to be taken.
Samsung Wants Over $700 Million in Damages for Leak of IP to Chinese
About a year ago, Samsung Display claimed 3.6 billion won in damages against Toptec over an alleged OLED technology leak. Now, the company is significantly increasing the claim to 73 billion won (approximately $730 million), a move that Toptec has criticized as an excessive and one-sided demand that does not align with legal standards, according to The Elec.
This case dates back to 2018 when the Suwon District Prosecutor’s Office indicted a Toptec business executive, accusing the company of leaking equipment used in the OLED flexible lamination process to a Chinese panel manufacturer. Although Toptec had produced the equipment, Samsung Display had collaborated with them in developing its design and structure.
In the summer of 2023, the South Korean Supreme Court upheld a lower court’s decision, maintaining the guilty verdict against Toptec’s management for the technology leak. Samsung Display now wants a more than 20-fold increase in damages and Toptec is not happy, asserting that the new figure is solely based on unilateral accounting on Samsung Display’s part.
