Chinese OLED matrix manufacturers to catch up with LG and Samsung in two to three years

South Korean companies LG and Samsung for many years occupy a leading position in the market of display panels. However, after more than 20 years of hard work in this area, Chinese companies have gained leadership in the production of LCD screens. BOE is currently the leading LCD display company. Now Chinese companies have seriously set their sights on the OLED panel market.

Chinese manufacturers intend to catch up with South Korean companies within two to three years. This applies primarily to the production of OLED-matrixes of small and medium sizes. Currently, Samsung is almost the sole player in this market. By the end of last year, the Korean tech giant supplied 88.1% of OLED displays for smartphones. However, now Chinese companies have begun actively building production lines for OLED matrices, which will begin to operate at full capacity within one to two years. Currently, more than ten lines for the production of OLED screens are already operating in the country. After two or three years, they are quite capable of catching up with the scale of production and product quality of the South Korean giants.

However, Chinese companies are still underrepresented in the large OLED matrix segment. In this area, LG leads, ahead of even its main competitor in the face of Samsung by a huge margin.

However, more than 80% of OLED displays are used in smartphones. The projected revenue of OLED-screen manufacturers this year will be about $ 33 billion, $ 26.6 billion of which will come from matrices for smartphones. The share of BOE in the first quarter of this year amounted to 5.6% of this amount, although in the fourth quarter of 2019 this figure was equal to 2.6%.

In addition, it is reported that Apple’s spending on OLED panels this year will be $ 9.8 billion, or about 30% of the total. This means that the American company will become the largest buyer of OLED matrices in 2020.

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