The gist of it: Samsung and LG sit pretty atop the high-end TV market but there is a bottom-up threat from China’s LCD makers. China and the rest of the world are not in a trade war, but a supply chain war. And the Chinese government is looking to win the LCD TV battle by directing the action of local suppliers through consolidation and control of local manufacturers.
Consolidation of LCD Manufacturers in China
From April 12-14, 2023, UBI Research is holding its 2023 OLED Conference Korea in Incheon. The company’s CEO, Choong Hoon Yi, has been talking to The Elec about Chinese display panel makers monopolizing the LCD market and threatening the TV businesses of Samsung and LG. Yi believes that while many see the Chinese dominance in the LCD market as a threat to South Korea’s display panel businesses, the bigger threat is to the TV markets of Samsung and LG.
Yi says, a government-led plan in China aims to merge the display market into three companies, with IVO and HKC merging and BOE’s OLED business merging with Visionox. Yi bemoans China’s central government and those of the provinces holding stakes in local display panel makers and having such a large influence on their affairs (the fact that Chines manufacturers are going through financial difficulties and looking for government help is making this ever more likely). Chinese display panel makers could make it difficult for Samsung and LG to procure sufficient TV panels. Yi also said that LG Display was in talks with CSOT to sell its Guangzhou factory, which seemed rash in light of what is happening. It seems like the threat from LCD TV panels could hamper the transition of Korea’s industry to OLED dominance, and that it may become a distraction or a drain on much needed investment today.
