Samsung Prasident Han Jong-Hee has recently agreed to use OLED panels with colorful quantum dots, so-called QD-Oleds, in the in-house televisions. Almost a year he represented the point of view, the technique is incompatible with Samsung’s current strategy. This saw the following:
- LCDs with LED backlight for the lower end
- LCDS with quantum items in the backlight for the middle segment
- QD-understood mini LED LCDs for the upper segment
- Mikroled TV for the "One-percentage".
To bring Samsung Electronics to the program’s in-house QD OLED panels – which has not yet done any other TV brand – Samsung Displays showed the schedule for the retention of its remaining LCD factories from Marz to the end of this year. Apparently it was Prasident Han, who had first made this compromise.
to "Advanced TVs" DSCC pays the OLED TVs, LCD TVs with Quantal Points Film (QDEF), QD OLEDs, Dual Cell LCD TVs, Mikroled TVs and MiniLed TVs and 8K TVs.
Samsung Displays (SDC) has a production line Q1 of the Generation 8 in Sudkorean asan.5 with a capacity of 30.000 substrates built per month; This runs since December last year in pilot operation. SDC expects to start by mid-2021 prototypes and starting with mass production from 2022. Staff from Samsung Electronics (more precisely, from the TV and monitor division Samsung Visual Displays) were inaccurate because of the high panel costs and the difficulty of taking another technique in the TV assortment.
The renewed interest from Samsung Electronics on QD-Oleds was awakened by the changed supply chains for TV panels. These ranges until the beginning of 2019 when the production capacity for TV panels rose faster than demand. The UK Capacities brought both Samsung displays as well as LG displays to sell and plan production lines in China and plan to shut up old LCD factories in Korea or to convert them to OLEDs.
Then came the pandemic and the home work phanomena increased the demand for notebooks and monitors. As a result, panel manufacturers relocated the LCD production of televisions to notebooks and monitors, where sales per square meter is high. This leads to a shortage of the TV panels, whereupon their prices in the last eight months rose by 50 to 70 percent. SDC and LGD then delayed their LCD discharge tarpaulins.
China has modern factories
However, the number of generation factories is rising 10.5 in China, notebook and monitor growth relaxes and it is expected that prices for TV panels fall again in the second year 2021. This has been able to enable Samsung Displays and LG Displays to return to your LCD exit strategy.
The two tables show the type of delivery problems of Samsung Electronics:. In 2019 and 2020, China delivered 32 percent and 31 percent of TV panels to Samsung, the proportion of Samsung Displays took off at the same time. In this year, SDC’s LCD panel capacity decreased by 20 percent, whereby Samsung Electronics was still dependent on Chinese panel manufacturers. If SDC completely shut down its LCD factories, the share of China increased by 10 million panels and increase to 50 percent of the Samsung Electronics TV business. Each open or hidden action of the Chinese producers to reduce selling to Samsung then wastes devastating for business.
Samsung Electronics in recent years already many LCD panels from China.By selling our own Fabs at CSOT, the share will increase.
The worldwide panel market.is dominated by the Chinese panel manufacturers Boe, CSOT and HKC.
The Strategy of Samsung Electronics, "Advanced TVs" Concentrating (Gemab DSCC definition) is also threatened by Chinese manufacturers, because the primary source of 65-duplicate TV panels are the many generation factories 10.5 in China. China likes to dominate the profitable Advanced TV market, which generates annual turnover of around $ 20 billion and has a share of 50 percent at the Samsung currently.
Here is Samsung Display into the game, which still operate LCD factories, but at the same time have invested 12 billion US dollars in OLEDs with quantum dots (QD-OLEDs), although there are no commitments of any TV manufacturers yet. Samsung Electronics suggested SDC to demand its LCD production until at least the end of this year and promised to use QD-OLED panels for the in-house TVs. SDC agreed with the relocation, as it is desperate for customers for his QD OLED panels and will continue the mass production of LCDs in its Generation 8 LCD production line in Asan until at least the end of 2021.
OLED panels from LG for Samsung?
But the new cooperation is not the end of history. On the fountain of this QD-OLED envision, an unnecessary report of the Korean MTN followed that Samsung Electronics and LG Display a conditional contract on the purchase of up to one million OLED panels in the second half of 2021 and up to four million panels a year Have completed 2022. Samsung Electronics denied the report vague (there was an interview of the IT Chosun with the Prasident of Samsung Electronics, who said it "only" be – Anm. B. Raikes). However, Samsung Electronics and LG Display have met since a year regularly to negotiate the purchase of OLED panels through Samsung Electronics.
Prasident Han Jong-hee (left) from Samsung Electronics and Prasident Choi Joo-Seon from Samsung Display.
The last sticking point was the marketing strategy: Samsung has been criticizing the aging problems and lower luminance of the OLEDs of LG, during LG with the poorer contrast, the lower color quality and slower reaction times of the Samsung LCDs. The companies could not agree on how these marketing strategies have.
In view of the current capacity at LG Displays, the additional demand of four million panels has been used to extend all production for LG Electronics, Sony and Samsung Electronics by around 30 percent – not to mention the assets of the incurable 15 TV brand manufacturers. LGD was the order to help the extension of the generation 8.5-factory in the Sudkorean Paju by 30.000 Substrate / Month to justify and empty GEN-10.Equip 5 buildings in Paju. LG Displays Progress when testing the inkjet printer procedure for OLEDs (IJP), however, the whole thing complicates why the purchase of equipment (possibly by Tokyo Electron) could be taught.
SDC can see the action of Samsung Electronics positively as it accelerates Samsung’s entry into the OLED TV market, while the company is waiting for the results of the QD OLED experiment. Alternatively, you could also see the action as a doubt of Samsung Electronics on the SDC strategy, as QD-OLEDs are liable behind the schedule and are also more expensive than OLED panels of LGD – which were even more favorable if LG Display were a gene 10.5-Fab for Ink Jet Printing.
Samsung needs a plan B
For Samsung Electronics, it is of a large importance to free yourself with the LCD capacity from China’s ripple. According to the current state, it will take years until the microled technology arrives in price regions of 2000 to 4000 dollars. But that will be necessary to compete in the high-end television market (if overhead).
Young, Samsung presented his microled consumer TV, a 110-duplicate 4K device for proud 155.000 US Dollar (150.000 Euro).
Should it take up to 2025, a competitive price of $ 4000 for a 65"-To achieve microled tv with 8K resolution, and make the microleds 80 percent of the panel costs, the LED emitters in the next four years had to fall by 99 percent towards today’s microled costs. Obviously, Samsung Electronics needs a back-up plan!
This article first appeared Display Daily