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China's display development is fierce, Samsung and LG make structural adjustments

In response to the fierce attack by Chinese Chinese display companies, the recent conflicts between Korean display LG monitors and Samsung monitors have gradually cooled down, and each has undergone structural adjustments.

According to the Korean media "DDaily" report, the market-adjusted enterprise DSCC statistics of global display productivity (CAPA) this year, China accounted for 46%, almost twice as much as South Korea (24%). As of 2016, South Korea (35%) is still ahead of China (29%), but since it was surpassed by China in 2017, the gap between China and South Korea is growing.

In the field of LCD (liquid crystal display), Chinese companies have adopted low-cost offensives, which has gradually made Korean companies lose their competitiveness. According to a survey by the Korea Economic Research Institute, South Korea’s LCD market share was 32% this year, and China (33%) took the lead with a slight difference. On the other hand, although Korean companies still lead China in the OLED field, Chinese companies are also accelerating to catch up with South Korea. China's BOE, Visionox, and Huike recently announced that they will invest in the OLED field with a fund size of more than 15 trillion won.

Due to the sluggish performance of LG Display, the company began to carry out high-intensity structural adjustments, and reduced labor costs through voluntary retirement and abolishment of employees. Han Xiangfan, vice president of LG Display, expressed his resignation due to the deterioration of the operation.

It is widely believed that the revenue of LG Display in the third quarter will be lower than the market forecast. In the third quarter of LG Display, the forecast revenue is 6.1292 trillion won, the operating loss is 255.8 billion won, and the operating loss in 2019 will be 1.45 trillion won.

On the other hand, Samsung Electronics has also begun to allow some production staff and office workers to apply for voluntary retirement. The Chungnak Mountain Factory, which originally produced LCD panels, also decided to cut production.

Overall, both companies are affected by Chinese companies, but the difference is that Samsung's market share in the small and medium-sized OLED sector has dropped to around 80%, but still far ahead of the industry, plus Samsung display is the main folding display Suppliers, in addition to the LCD business, Samsung monitors still have many advantages.

In addition, Samsung Display plans to invest 13.2 trillion won to build QD OLED production lines, setting a record for Korean companies' single-note display investment. LG Display is trying to drive the large OLED display market, but implementation is not as easy as planned. Relevant people in the display industry said that the two companies are undergoing organizational restructuring, but Samsung Electronics holds many weapons and is under relatively little pressure.