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Company News >> OLED Jump Offensive Causes LCD Industry Crisis 30th,May,2018
                                               The reason for creating a plan for a super LCD panel supplier, the most likely cause of concern is the replacement of OLEDs with LCDs.

    In terms of technology, OLEDs and LCDs are very similar at the panel stage (backstage module processes that do not include LCDs): so that any LCD production line can be economically transformed and converted to OLED panels. The investment in this kind of conversion is only less than half of the new production lines, and may even be lower. In other words, today's LCD king is likely to be the king of tomorrow's OLED - this is precisely an important part of Samsung's "Yangmou."

   Even more terrifying is that the current global panel industry is mainly at a loss due to the following: the financial crisis hit the demand, the transient investment surplus, the popularity of large-size TV is still low, and disorderly competition from multiple suppliers. These problems will change as the global economy improves, and Samsung’s dominance in this "plan" will change. If we look at a 3-5-year medium and long-term plan, profit forecasting should not become a stumbling block to LCD or OLED panel investment.

    It is not the current "loss" that really prevents Samsung's competitors from expanding their investment, but the quagmire of the financial crisis. Japanese companies were affected by the appreciation of the yen during the financial crisis (won the value of the Korean won depreciated), resulting in poor returns and huge losses. Sony, Sharp, and Panasonic, the three TV giants are unable to start a new panel investment plan in the short term. Taiwanese panel companies are affected by a series of operational reasons (such as lack of brand support, lack of profitability of the whole machine, and always being at the lower end of the supply price, as well as losses, etc.), and the possibility of large-scale investment in new panel lines and funds in the short term The ability is not strong.

    On the other hand, if Samsung's Suzhou plant is put into operation, it will inevitably have the low-cost advantages of the mainland manufacturing. In combination with Samsung's high-end OLED strategy, its color TV product line will fully surpass Japanese companies - they do not have low-cost support for mainland panels, nor do they have OLEDs. Technical support for large-size lines - Samsung's advantages can lead at least one year.

    With the establishment of Samsung’s competitive advantage, the global LCD panel loss situation will remain difficult to reverse even after the “financial crisis” fully improves – the global panel industry is in a quagmire of losses, especially since all competitors have lost money compared with Samsung. In a much more severe situation, will the competitor be thrown off completely or simply kick out the competition camp? - This possibility is absolutely not small, this is Samsung's most anticipated outcome of "panel conspiracy"!

    As a result, Samsung launched a new LCD offensive at this time and in the shadow of losses, and OLED's high-generation cross-technology jumping offensive, in an attempt to shun the competitor and become a truly global player. The main core links of the “full-industry chain” of color TVs lead the industry in an all-round way, especially the panel-based core manufacturing segment and brand (mainly relying on advanced OLED TVs), which is the leading color TV company in the core sales segment.

    In fact, in line with Samsung’s strategy is LG, the number two person in the global panel industry. LG's panel company LGD's 8.5-generation line in Guangzhou has also been approved by the National Development and Reform Commission. The market window is only needed for start-ups. On the other hand, LG has also demonstrated a 55-inch OLED LCD TV and is ambitious to say that it is "coming soon." In the loss-making quagmire, "increase LCD investment", "increase OLED investment", and use huge imperial body and capital chain advantages to completely shake off competitors: LG and Samsung are taking the same path.

   However, this road is not only a huge return, but also a huge risk and huge investment. Ultimately, whether Samsung or LG can do it will take time to test it.

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