Home Digitalisation Korean display makers losing ground to Chinese Companies

Korean display makers losing ground to Chinese Companies

The market share gap between Korea and China in the global display market is expected to widen this year in China's favor.

The market share gap between Korea and China in the global display market is expected to widen to more than 10 percentage points this year.

China’s display market share is expected to rise to 43 percent this year from 41.5 percent in 2021. Korean companies logged a market share of 33.2 percent in 2021, losing the No. 1 position they have maintained for 17 years since 2004 to Chinese manufacturers.

In the LCD market, China’s market share reached 50.9 percent in 2021 while Korea posted a mere 14.4 percent. Korea’s market share was lower than that of Taiwan (31.6 percent). As profitability deteriorated due to a price war waged by Chinese companies, Samsung Display decided to suspend LCD production in the second quarter of this year. LG Display, which is dependent on LCDs for 65 percent of its sales, implemented an LCD exit strategy ahead of schedule after recording a loss for two consecutive quarters.

China is also in hot pursuit of Korea in the OLED sector as well. While Korea’s OLED market share fell from 98.1 percent in 2016 to 82.8 percent in 2021, that of China rose from 1.1 percent to 16.6 percent during the same period.

The Chinese government has continued to provide huge support to its display industry. The Korean government started to support the display industry belatedly. President Yoon Suk-yeol announced 12 national strategic technologies, including displays, at the National Science and Technology Advisory Conference on Oct. 27. It plans to invest more than 25 trillion won in R&D in the display field over the next five years and help Korean display makers secure super-wide gap technology.

In addition, the Korean government is discussing ways to make the display industry eligible for government support under the Act on Special Measures for the Reinforcement of National High-tech Industry Competitiveness, which came into effect in August. The special law currently covers only semiconductors and secondary batteries. Industries covered by the special act can enjoy benefits such as facility investment, tax support, package investment such as licensing and infrastructure, the development of human resources such as the establishment of contract departments and specialized colleges and universities and R&D/special support.

Source: BusinessKorea

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