Break the technical monopoly! Chinese companies launch OLED market
According to the "Nihon Keizai Shimbun" report, Chinese companies have begun to focus on large-scale investments in the OLED panel area used by smart phones. Six major Chinese companies, including the BOE Technology Group (BOE), have successively established new factories. It is estimated that by 2020, the total investment is expected to exceed 2 trillion yen (about RMB 124 billion).
However, on the one hand, Chinese companies continue to increase production investment in the field of LCD panels. It is expected that by 2018, they will surpass South Korea in the production capacity rankings of all countries and take the world’s first throne. Not only that, Chinese companies are also extending their business to the OLED panel area, which makes the layout of top-tier electronic components in Chinese companies more and more clear.
At this stage, BOE Technology, China's largest panel maker, is building an OLED panel factory in Chengdu, Sichuan, which will have the capacity to supply 10 million smartphone panels per month. The investment will exceed 500 billion yen (approximately RMB 31 billion). The factory will be put into operation in phases and production will begin as early as 2019. As for CSOT, it is also building a factory of the same scale in Wuhan, Hubei Province.
Because Apple has revealed to customers that there are plans to adopt OLED in part of the new iPhone in 2017. Therefore, BOE Technology and China Star Optoelectronics decided to implement the investment in bulk, which is believed to have also been affected by this news. The two companies studied and judged that Chinese smartphone manufacturers such as Huawei Technologies will also start adopting OLEDs, which will increase demand. Compared with TFT-LCDs, OLEDs can exhibit vivid colors and can be bent. Therefore, it provides greater freedom for design. Smartphone manufacturers believe that this is beneficial to the development of a new generation of products, and gradually adopt OLED, and panel manufacturers are also stepping up their supply.
In the future, if Chinese companies start production as planned, global shipments of smartphones will be converted to meet the market's demand of more than 30%. However, OLED production technology is more difficult. Even Samsung, which produces about 300 million smartphones a year, is worrying about improving yields. Therefore, a substantial increase in production may lead to a drop in market prices, coupled with difficulties in raising yields, and will also increase costs, which will also cause Chinese-related companies to face the risk of deteriorating operating conditions.
OLED display technology
The report pointed out that Chinese companies rely on huge amounts of financial assistance from local governments to implement large-scale investment in OLED panels and increase the competitiveness of South Korean manufacturers. With Chinese companies launching aggressive offensives, OLED panels for smartphones may grow to be comparable to TFT-LCD panels in the future. In the field of display devices used in smart phones and televisions, whether it is the current mainstream TFT-LCD or the new generation of organic OLEDs, Japanese companies have taken a step forward in the accumulation of basic technologies. However, after the 2000s, Korean manufacturers have mastered the dominance of liquid crystal production, and the global market for smart phone OLEDs is now almost monopolized by Korean Samsung Electronics. However, on the one hand, Chinese companies continue to increase production investment in the field of LCD panels. It is expected that by 2018, they will surpass South Korea in the production capacity rankings of all countries and take the world’s first throne. Not only that, Chinese companies are also extending their business to the OLED panel area, which makes the layout of top-tier electronic components in Chinese companies more and more clear.
At this stage, BOE Technology, China's largest panel maker, is building an OLED panel factory in Chengdu, Sichuan, which will have the capacity to supply 10 million smartphone panels per month. The investment will exceed 500 billion yen (approximately RMB 31 billion). The factory will be put into operation in phases and production will begin as early as 2019. As for CSOT, it is also building a factory of the same scale in Wuhan, Hubei Province.
Because Apple has revealed to customers that there are plans to adopt OLED in part of the new iPhone in 2017. Therefore, BOE Technology and China Star Optoelectronics decided to implement the investment in bulk, which is believed to have also been affected by this news. The two companies studied and judged that Chinese smartphone manufacturers such as Huawei Technologies will also start adopting OLEDs, which will increase demand. Compared with TFT-LCDs, OLEDs can exhibit vivid colors and can be bent. Therefore, it provides greater freedom for design. Smartphone manufacturers believe that this is beneficial to the development of a new generation of products, and gradually adopt OLED, and panel manufacturers are also stepping up their supply.
Chinese companies launch OLED market
In addition, in the layout of China Tianma Microelectronics Group, the TFT-LCD plant built in Wuhan City was changed to a dedicated OLED factory. Companies such as Hefei Optoelectronics and Visionox Display Technologies also plan to build new factories. As for new start-up companies such as Rouyu Technology, it is relying on the financial support of the local government and has also made investment decisions of more than 300 billion yen (approximately RMB 18.6 billion). In the future, if Chinese companies start production as planned, global shipments of smartphones will be converted to meet the market's demand of more than 30%. However, OLED production technology is more difficult. Even Samsung, which produces about 300 million smartphones a year, is worrying about improving yields. Therefore, a substantial increase in production may lead to a drop in market prices, coupled with difficulties in raising yields, and will also increase costs, which will also cause Chinese-related companies to face the risk of deteriorating operating conditions.
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