The tl;dr version: Samsung and LG are carving up markets between them by not stepping on each other’s toes as they continue South Korea’s push to become the dominant supplier of OLED panels. Here, Samsung is investing in computer devices and monitors (what the Korean’s refer to as the IT market) while LG had earlier stated its aim to focus on automotive and smartphones OLEDs. It doesn’t mean that either company will not be active in the other’s markets, but it does paint a picture of a concerted effort to divide and conquer. By 2026, we can expect intense competition between Japan, South Korea, and China, with the expectation that the US will have something to show for its own initiatives based on the CHIPS Act. Could be a golden era for materials, parts, and equipment makers.
South Korean President, Yoon Suk Yeol, visited the Asan campus of Samsung Display to celebrate a new investment deal between the company and materials, parts and equipment makers. At the event, Samsung Display announced its plan to invest 4.1 trillion won (US$3.1 billion) in upgrading production lines for organic light-emitting diode (OLED) panels for computing devices and monitors by 2026. The investment was part of the company’s earlier decision last to invest 60 trillion won ($45.6 billion) in its plants in central and southern South Korea.
The announcement ceremony was also attended by Industry Minister, Lee Chang-yang, Samsung Electronics Chairman, Lee Jae-yong, and Samsung Display CEO, Choi Joo-sun. President Yoon hailed Samsung’s investment as a “new leap forward” for the nation’s display industry and a progress in the government’s plan to promote cutting-edge industries. He noted that the investment will help revitalize the economy in the region by creating 26,000 jobs and spurring sales of material, parts and equipment businesses.
Samsung’s investment in OLED production will help enhance the country’s display sector and boost the competitiveness of domestic makers of display materials, parts, and equipment. The completion of the 4.1 trillion won investment project is part of a general initiative by the government and the company to secure the country a dominating role in the manufacturing of OLED panels. By contrast, Japan’s industry ministry announced plans today that the country wants to triple sales of domestically made semiconductors to 15 trillion yen ($112.55 billion) by 2030 in order to strengthen its economic security and boost domestic microchip production. However, the Japanese government is providing subsidies to companies such as Taiwan Semiconductor Manufacturing Co to build or expand plants in Japan. Supply chains for displays, and semiconductors in parallel, are going to look nothing like they did during the pandemic.
