Just when the Chinese panel makers BOE and Huaxing Optoelectronics were still intoxicated with the 8.5-generation LCD panel line that had just been put into production, LG Display (LGD) recently stated that it plans to invest US$2.83 billion (about 18 billion yuan) in volume production of the next generation of panel OLEDs. Compared to LCDs, OLED displays are lighter and thinner, have larger viewing angles and are more energy-efficient, and are considered the mainstream of next-generation displays.
On the one hand, the heavily invested LCD panel cannot recover its investment in a short period of time. On the other hand, the innovative technology has come to the door. Do Chinese companies still follow? Follow-up means that it has not yet realized profitability on the LCD panel, but has to spend huge sums of money to enter the OLED field; if not, once OLED becomes the mainstream display technology, Chinese companies will be left far behind.
OLED war is imminent
OLEDs, ie organic light-emitting diodes, are recognized as next-generation display technologies. Since 2003, this kind of display device has begun to be applied to small digital products such as MP3.
According to the plan, LG will mass-produce OLEDs in the second half of 2014. Prior to mass production, the company will take the lead in producing a small amount of TV OLED panels in 2012 and will use them in LG Electronics' 55-inch TV products.
Luo Qingqi, a senior director of Pall Consulting and a specialist in the home appliance industry, said in an interview with the reporter of the “Daily Economic News†that the power of LGD in the OLED field should be related to Samsung. At present, Samsung's 3.5-generation OLED production line produced 14-inch panel yield has reached more than 90%, its monthly production capacity of 72,000 5.5 generation line has also been mass production. In June of this year, Samsung announced that the 8th generation OLED panel test line will be put into use in May next year, and plans to extend the use of OLED panels from smart phones and tablet computers to televisions and other fields.
In an interview with “Daily Economic News†reporters, relevant persons of the LGD Public Relations Department evaded related issues regarding the outlook for OLEDs, and stated that the headquarters no longer responded to the above questions.
“At present, Samsung has used OLED screens for Pad products. Compared to the applications of MP3 and MP4, it has entered the second stage. The third stage is the popularity on TV.†Luo Qingqi believes that Samsung is on OLED. The frequent actions had to allow other companies to accelerate the layout in this area.
In fact, OLED TVs were first commercialized by Sony. In 2007, it introduced the world's first 11-inch OLED TV, which is said to be only 3 mm at the thinnest point of the screen. However, Sony's OLED road did not go smoothly. The sale price was too high and resulted in poor sales. In March last year, Sony had to stop production and sales of OLED TVs in Japan. However, this does not mean that Sony gave up its exploration in OLED, and Sony did not expressly withdraw from the research and development of large-size OLED display technology. It is understood that Sony's current OLED is mainly concentrated in the professional field.
Chinese companies are forced to follow suit?
It seems that as a response to Samsung, the Chinese mainland established the China OLED Industry Alliance on June 2 this year. Currently, Kunshan Visionox, Sichuan Changhong, Foshan Rainbow and other companies are engaged in small-size OLED production. AUO and Chi Mei of Taiwan, China, have long been active in OLED. “OLED is now ready for makeup and ready to perform on stage.†Luo Qingqi said.
Changhong Group spokesman Liu Haizhong told the "Daily Economic News" reporter, OLED is the future development trend, Changhong started preparations in this area very early. The development of the OLED industry has become a national strategy. What companies need to do is to identify their positioning based on their own strength.
However, according to Luo Qingqi, Chinese companies are still in the state of being dragged by others in the rapidly changing electronic technology. "The industrial chain of China's panel is not perfect, and the upstream glass substrate and chemical materials are subject to human control. Even in the era of OLED, this situation cannot be changed for a while."
Due to the inability to master the core technologies, Chinese companies can only adopt a follow-up strategy. What songs are sung by Japan and South Korea can only be adjusted by Chinese companies. On the LCD panel, China does 6th generation line 8th generation line, China 8th line others 10th generation line. Now, in the OLED field, Japan and South Korea have set off a new round of technology competitions.
Luo Qingqi believes that Chinese companies seem to have entered the "step-by-step, step backward" situation. In the face of new technologies, it is difficult to catch up with followers; if they are not followed, they are thrown farther. This leaves the outside world with an unimpressed impression.
Liu Buchen believes that the deep problems in China's color TV industry lie in the lack of core technologies and the lack of product competitiveness due to backward technology. Behind the chase, Chinese companies also paid a lot of money. Take “BOE†as an example. Last year, the company’s net loss amounted to 2 billion yuan. Since 2005, only one year has achieved profitability, and the rest of the years have been in the cycle of "more and more losses have been built, and more and more losses have been built."
In Hong Shibin's view, Japan and South Korea's companies are desperately trying to speed up the elimination of technology. The purpose is to drag the Chinese companies to death. This is similar to how the United States used an arms race to drag across the Soviet Union. “God said 'don't go too fast, it will lose souls too soon'. The Japanese and South Korean companies want our Chinese companies to lose their souls.†Hong Shibin expressed his view that Chinese companies are struggling to cope with new technologies.
Wang Jian, general manager of Rainbow (Foshan) Flat Panel Display Co., Ltd., holds a different view. The gap between the second-generation display technology (LCD) and China's foreign companies is relatively large. However, OLED has just started and the gap between China and Japan is not large. He told the “Daily Economic News†reporter that the company originally planned to launch another 4.5-generation OLED production line in October this year, but now it is considering whether to do a higher-generation production line.
On the one hand, the heavily invested LCD panel cannot recover its investment in a short period of time. On the other hand, the innovative technology has come to the door. Do Chinese companies still follow? Follow-up means that it has not yet realized profitability on the LCD panel, but has to spend huge sums of money to enter the OLED field; if not, once OLED becomes the mainstream display technology, Chinese companies will be left far behind.
OLED war is imminent
OLEDs, ie organic light-emitting diodes, are recognized as next-generation display technologies. Since 2003, this kind of display device has begun to be applied to small digital products such as MP3.
According to the plan, LG will mass-produce OLEDs in the second half of 2014. Prior to mass production, the company will take the lead in producing a small amount of TV OLED panels in 2012 and will use them in LG Electronics' 55-inch TV products.
Luo Qingqi, a senior director of Pall Consulting and a specialist in the home appliance industry, said in an interview with the reporter of the “Daily Economic News†that the power of LGD in the OLED field should be related to Samsung. At present, Samsung's 3.5-generation OLED production line produced 14-inch panel yield has reached more than 90%, its monthly production capacity of 72,000 5.5 generation line has also been mass production. In June of this year, Samsung announced that the 8th generation OLED panel test line will be put into use in May next year, and plans to extend the use of OLED panels from smart phones and tablet computers to televisions and other fields.
In an interview with “Daily Economic News†reporters, relevant persons of the LGD Public Relations Department evaded related issues regarding the outlook for OLEDs, and stated that the headquarters no longer responded to the above questions.
“At present, Samsung has used OLED screens for Pad products. Compared to the applications of MP3 and MP4, it has entered the second stage. The third stage is the popularity on TV.†Luo Qingqi believes that Samsung is on OLED. The frequent actions had to allow other companies to accelerate the layout in this area.
In fact, OLED TVs were first commercialized by Sony. In 2007, it introduced the world's first 11-inch OLED TV, which is said to be only 3 mm at the thinnest point of the screen. However, Sony's OLED road did not go smoothly. The sale price was too high and resulted in poor sales. In March last year, Sony had to stop production and sales of OLED TVs in Japan. However, this does not mean that Sony gave up its exploration in OLED, and Sony did not expressly withdraw from the research and development of large-size OLED display technology. It is understood that Sony's current OLED is mainly concentrated in the professional field.
Chinese companies are forced to follow suit?
It seems that as a response to Samsung, the Chinese mainland established the China OLED Industry Alliance on June 2 this year. Currently, Kunshan Visionox, Sichuan Changhong, Foshan Rainbow and other companies are engaged in small-size OLED production. AUO and Chi Mei of Taiwan, China, have long been active in OLED. “OLED is now ready for makeup and ready to perform on stage.†Luo Qingqi said.
Changhong Group spokesman Liu Haizhong told the "Daily Economic News" reporter, OLED is the future development trend, Changhong started preparations in this area very early. The development of the OLED industry has become a national strategy. What companies need to do is to identify their positioning based on their own strength.
However, according to Luo Qingqi, Chinese companies are still in the state of being dragged by others in the rapidly changing electronic technology. "The industrial chain of China's panel is not perfect, and the upstream glass substrate and chemical materials are subject to human control. Even in the era of OLED, this situation cannot be changed for a while."
Due to the inability to master the core technologies, Chinese companies can only adopt a follow-up strategy. What songs are sung by Japan and South Korea can only be adjusted by Chinese companies. On the LCD panel, China does 6th generation line 8th generation line, China 8th line others 10th generation line. Now, in the OLED field, Japan and South Korea have set off a new round of technology competitions.
Luo Qingqi believes that Chinese companies seem to have entered the "step-by-step, step backward" situation. In the face of new technologies, it is difficult to catch up with followers; if they are not followed, they are thrown farther. This leaves the outside world with an unimpressed impression.
Liu Buchen believes that the deep problems in China's color TV industry lie in the lack of core technologies and the lack of product competitiveness due to backward technology. Behind the chase, Chinese companies also paid a lot of money. Take “BOE†as an example. Last year, the company’s net loss amounted to 2 billion yuan. Since 2005, only one year has achieved profitability, and the rest of the years have been in the cycle of "more and more losses have been built, and more and more losses have been built."
In Hong Shibin's view, Japan and South Korea's companies are desperately trying to speed up the elimination of technology. The purpose is to drag the Chinese companies to death. This is similar to how the United States used an arms race to drag across the Soviet Union. “God said 'don't go too fast, it will lose souls too soon'. The Japanese and South Korean companies want our Chinese companies to lose their souls.†Hong Shibin expressed his view that Chinese companies are struggling to cope with new technologies.
Wang Jian, general manager of Rainbow (Foshan) Flat Panel Display Co., Ltd., holds a different view. The gap between the second-generation display technology (LCD) and China's foreign companies is relatively large. However, OLED has just started and the gap between China and Japan is not large. He told the “Daily Economic News†reporter that the company originally planned to launch another 4.5-generation OLED production line in October this year, but now it is considering whether to do a higher-generation production line.
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