What Display Daily thinks: If you judge the Korean display industry by the actions of one of its main organizations, the KDIA then you might get a sense that there is a certain amount of floundering going on.
The general consensus is always going to be to go where the Chinese manufacturers are not, and entrench yourself there, build moats, and that’s that. So, now we get the MicroLED push and the XR initiatives.
The problem with this strategy is that there is no real moat to be built, other than through long-term investments of enormous sums building capacity for a technology that may not have the legs to deliver for a while.
At some point, the Korean display industry will have to face up to the need to be able to fight the Chinese manufacturers on their terms and not keep hoping it can take the ball away and go start another game somewhere else. At this stage, only Apple stands in the way of Korea’s display companies being wholly reliant on Samsung and LG consumer electronics sales for any market heft. That’s nothing to be sneezed at, but I don’t get it; is being solely dependent on one customer, albeit the biggest one you could possibly have, a really great strategy? Seems awfully precarious.
KDIA Tackles Unpaid Payments from Chinese Firms and XR
The Korea Display Industry Association’s (KDIA) Vice Chairman ,Lee Dong-wook, has been busy lately fighting the fires of the local industry. He recently told a press gaggle about ongoing issue of unpaid equipment payments by Chinese panel manufacturers to South Korean suppliers. Lee announced that KDIA is conducting a survey to assess the problem and is exploring potential responses. He emphasized that while Chinese companies claim these practices are standard, they do not align with international norms, and he is prepared to personally engage in efforts to persuade and educate these firms. Reflecting on his recent visit to China, Lee noted improved treatment and stressed the importance of not approaching China submissively. He highlighted the need for government support for panel manufacturers and the challenges faced by component suppliers due to vertical integration and lack of domestic investment.
KDIA is also claiming to make significant strides in the extended reality (XR) industry, focusing on new market opportunities in industrial and defense sectors. The organization has launched a project to develop and demonstrate optical modules for AR glasses tailored for logistics, highlighting the applicability and reliability of XR devices in enhancing productivity across manufacturing, logistics, medical, gaming, military, and educational fields. Supported by the Ministry of Trade, Industry, and Energy, and involving key players like PNC Solutions and the Korea Electronics Technology Institute, this initiative is suppoed to drive the global XR market from $40.1 billion in 2023 to an estimated $111.5 billion by 2028 (no idea where those figures came from).
According to KDIA, the defense sector is witnessing a paradigm shift with XR technologies enhancing military training simulations, improving combat readiness, and reducing costs. The KDIA’s efforts include integrating AI and XR into the Korean Army’s future combat system, Army TIGER, and collaborating with global tech giants to advance the XR ecosystem.
Despite the promising advancements, the consumer XR device market faces challenges, as seen with Apple’s Vision Pro’s lukewarm reception due to high prices and limited content. However, major companies like Apple, Google, Samsung, and LG are re-strategizing, integrating AI technologies to enhance usability and expand their XR product lines. Samsung’s collaboration with Qualcomm and Google, along with LG’s pursuit of partnerships with tech firms like Amazon, underscores the need for a robust domestic XR ecosystem. The KDIA continues to promote the XR industry through initiatives like the XR Display Industry Council and the XR Industry Convergence Alliance, aiming to strengthen domestic competitiveness and discover new applications. Lee Dong-wook, Vice Chairman of the KDIA, emphasized the importance of creating new markets based on public and private demand, solidifying the domestic component and material ecosystem, and actively responding to market expansion opportunities in medical, education, and entertainment sectors.
