South Korean IT Display Manufacturers Replacing LCD With OLED

- Oct 14, 2016 -

Due to growing capacity and price competition fromChina, South Korean LCD panel makers are quickly realizing that LCD displays profitability may eventually erode, and betting their future on organic light-emitting diode (OLED) displays. Because of lower profit margins and slowing market growth, the IT display category has become the first product line that LCD display manufacturers are quitting, according to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.

Samsung Display was the first company to do so, selling a fifth generation (Gen 5) fabrication plant (fab) to a Chinese touch and module maker last year. In the future, more fab restructuring is expected, especially the facilities dedicated to making IT panels. 

Brands like HP and Lenovo expected notebook panels to be in a surplus situation, and they were therefore keeping their panel inventories at very low levels. This shift from Samsung Display could cause some brands to experience panel shortages in the third quarter of 2016.Display could cause some brands to experience panel shortages in the third quarter of 2016.


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