South Korean manufacturers are making a collective shift toward OLED technology, signaling a major transformation in the global LCD and OLED market. For over a decade, LCD panels have dominated the television industry due to their slim design, large screen sizes, and affordability, gradually replacing CRT TVs. Early predictions about this shift have largely come true, but recent years have seen growing speculation that the LCD era is coming to an end.
OLED technology has emerged as a strong contender for replacing LCDs. With self-luminous properties, vibrant colors, zero input lag, infinite contrast, ultra-thin designs, and flexible displays, OLED offers superior performance and visual quality. This has led many in the industry to believe that OLED is the future of display technology.
South Korea, as the world’s largest panel producer, is leading this transition. LG Display recently shut down its fifth-generation P4 plant in Gumi, following the closure of its earlier 3.5-generation P2 facility. It’s expected that the 4th-generation P3 plant will also be closed by year-end. LGD plans to invest $18.08 billion in OLED by 2020, with new facilities including P10 and E6 in Paju, E5 in Gumi, and an OLED plant in Guangzhou, China.
Samsung Display, another key player, has been shutting down older LCD production lines for three consecutive years, closing its 7th-generation factory and two 5th-generation ones. The company has also built two large-scale OLED factories in South Korea. In 2023 alone, Samsung invested $8.8 billion to expand OLED production and convert some LCD lines into OLED manufacturing units.
From these moves, it's clear that South Korean manufacturers are accelerating the phase-out of smaller LCD panels and shifting toward OLED. While technological evolution often replaces old with new, OLED is unlikely to fully replace LCD in the short term. Production capacity adjustments and technical challenges mean that LCD still holds a significant place in the market, especially for larger TV sizes where cost remains a key factor.
Despite the shift, LCD still has a long commercial life cycle—potentially at least five more years. This means the liquid crystal market will remain strong, particularly for big-screen TVs. For example, when Samsung closed its 7th-generation panel plant last year, it caused a shortage of 40-inch TV panels. Similarly, LGD’s decision to close LCD plants has led to structural changes in the panel supply chain.
However, these shifts also create new opportunities for Chinese panel makers. As Korean companies reduce their LCD output, domestic manufacturers can step in to fill the gap. By capitalizing on this opportunity, Chinese firms can strengthen partnerships with global brands and expand their influence in the market.
Currently, BOE and other Chinese panel makers are focusing on 8.5-generation lines, which are essential for producing 55-inch TVs. They also operate 4th, 5th, and 6th-generation lines for smaller sizes. Companies like AUO, Innolux, Caijing, and Huaying are also active in the market. From a production capacity standpoint, Chinese manufacturers hold a competitive edge, positioning them well for future growth.
In conclusion, while the collective move by South Korean factories toward OLED is creating business opportunities for Chinese manufacturers, LCD technology is not disappearing anytime soon. It still has vitality and market demand. Meanwhile, OLED is not expected to dominate the market immediately. However, the next 5 to 10 years will likely bring significant changes to the TV industry, reshaping the landscape of display technology.
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