1 week Ago By Varun Godinho
It’s been a while since China’s display makers overtook Japanese, South Korean and Taiwanese rivals in the traditional liquid crystal displays (LCDs) used in computer monitors and TVs in terms of both production volumes and prices. Chinese display makers today account for more than 70 per cent of global LCD production capacity, according to the Washington-based Information Technology and Innovation Foundation (ITIF). Now, China’s domination in the LCD space is spilling over into OLEDs too.
Just five years ago, South Korean display leaders Samsung Display and LG Display held nearly 90 per cent of the market for smartphone OLED screens, data from market research agency Omdia shows. As of this year, however, their combined share has sunk to less than 60 per cent, while that of Chinese display manufacturers, led by BOE, has surged to over 40 per cent. ITIF estimates the market share of Chinese OLED makers now exceeds 50 per cent.
“Samsung Display is pivoting its OLED strategy to focus on the most premium clients, namely to serve Samsung itself and Apple,” said David Hsieh, senior research director for displays at Omdia. “It’s not likely that Samsung’s display making could compete with Chinese rivals on price, and it’s not likely that Chinese handset and electronics makers such as Huawei, Xiaomi, Oppo [and] Vivo will again turn to foreign suppliers once they have local solutions.” An OLED smartphone display made by Samsung costs around $80 to $100, according to Omdia, while Chinese display makers can offer them for $30 to $40 apiece, reported Nikkei Asia.
To compensate for the greater frequency of production defects, Chinese OLED makers also usually include a batch of free displays with each order. “This business model would largely help you to maintain your smartphone margin, so why wouldn’t you choose to use the Chinese OLEDs?” OLED displays are the most expensive component in consumer electronics, surpassing the cost of central processors in devices like smartphones and computers. Beijing is keen to push to localize tech supply chains.
Huawei uses OLEDs in the majority of its devices, including the Mate XT, which sources say contains screens mainly from BOE. Huawei was also one of the first in the industry to use OLEDs in tablets and laptops. Oppo, Vivo and Xiaomi have each followed suit and begun using local suppliers for OLED displays.
Honor tablets and laptops, also come with OLED screens. Honor reportedly sources its displays primarily from Chinese suppliers such as BOE Technology Group and Everdisplay Optronics. While Chinese OLEDs may not be as superior in quality consistently as its South Korean rivals, it is rapidly imrproving its quality.
“Based on our internal forecast, the technological gap of OLED technologies between South Korean and Chinese [manufacturers] is around a year or two,” said a manager with a US-based display equipment supplier. “Chinese display suppliers have poached too many South Korean engineers. It is only a matter of time before the Chinese fully dominate the OLED industry.
” China is ramping up its OLED production too. BOE is constructing the country’s first production line for what are called “8.6-generation” OLEDs.
Most existing OLED production lines are based on the 6-generation format. It is scheduled to begin operations in 2026. Other Chinese companies, like Visonix, are considering building similar lines.
Arguably, the decision by Apple to fit its latest iPad which it revealed earlier this year with OLED screens has set in motion a competition among major tech manufacturers to implemented OLED screens across tablets, smartphones and laptops. Most recently, Huawei’s new tri-folding Mate XT also featured an OLED screen, whereas Honor’s Magic V3 smartphone which is just 9.3 millimeters thick has an OLED screen too and can be folded more than 500,000 times.
It offers better brightness than premium iPhones and Samsung phones, meaning Chinese manufacturers are slow inching their way to a position of dominance within the OLED display market globally..
