Thanks to the noticeable effect of COVID-19 on important marketplaces these kinds of as Europe and North America, Korean panel makers may possibly suffer increased losses in the second quarter. So, can the pandemic accelerate the reshaping of the panel field?

In accordance to media stories, a short while ago, Samsung Electronics declared its initially quarter of 2020 fiscal report. Its show business enterprise suffered a decline of $240 million. In addition, Samsung Display screen will layoff some staff and will also shut down its Lcd production traces.

This reflects the helplessness of the Korean Liquid crystal display panel makers. LGD and Samsung Show, equally Korean panel giants, deal with very similar dilemmas. Nonetheless, Chinese Lcd panel makers continue on to extend their shipments and enhance the industry share.

Samsung accelerates withdrawal from Liquid crystal display production

Samsungs Q1 2o2o display screen business revenue hit $5.36 billion and the working loss was about $240 million. There is at present an oversupply in the Lcd industry and this brings about a enormous reduction in its rates. This seriously influences Samsung’s Liquid crystal display organization. 

As we all know, Samsung Display screen is an vital world Liquid crystal display maker company and a chief in smartphone displays. In accordance to the 2019 world wide smartphone panel market place survey report from CINNO Investigation, Samsung Exhibit occupies a around-monopoly placement in the international AMOLED smartphone panel sector in 2019. Its shipment is about 390 million pieces with a sector share of 85.2%. In addition, Samsung Show also makes exhibit panels for e-athletics screen screens, particular computer systems, smartwatches, TVs, and many others.

Nonetheless, in current times, there have been various experiences of Samsung shutting down its Lcd manufacturing line. As early as September last 12 months, there ended up stories that Samsung Screen introduced an early retirement strategy to lay off personnel. In addition, the business transferred some workforce from its Liquid crystal display production traces to OLED generation lines.

CINNO Investigation also statements that Samsung Show is accelerating the closure of Lcd ability and switching to OLED. The final shutdown might acquire place in the fourth quarter of this 12 months. Samsung’s withdrawal from the Liquid crystal display panel market place is not a total shock. As the output capability of its competitors boosts drastically, Samsung is struggling with issues in this area. 

Not just Samsung, LG Screen is also facing losses in Lcd manufacturing

Samsung Display is not alone, it is South Korean counterpart, LG Show is also getting rid of cash in its Lcd organization. In Q1 2020, LG endured a loss of about $296 million. This is the fifth consecutive quarter that it is losing money.

It is well worth noting that a lot of analysts reported that because of to the evident effect of the pandemic on Europe, North America, and other key markets, Samsung Exhibit and LG Exhibit panel suppliers could experience larger losses in the next quarter.

LG is also going through the very same problem as Samsung Show. It is transferring away from the Lcd discipline to the OLED area. At the close of January this 12 months, LG Exhibit declared that it would quit its manufacturing of Liquid crystal display Tv panels in South Korea, and the Paju plant in North Korea will also be shut this calendar year.

Though Korean Lcd makers “crumble”, Chinese brands “rise”

While South Korean Lcd manufacturing businesses are withdrawing from the market, Chinese producers like BOE, Huaxing Optoelectronics, and HKC are growing. Data from the Korea Screen Business Association present that South Korea accounted for 41.1% of the world wide panel industry very last calendar year, and has demonstrated a downward pattern for a few consecutive many years. This calendar year is quite probable to slide to 30%.

In contrast to the Korean panel market, the world wide share of Chinese mainland panels is swiftly soaring. The modest and medium-dimensions Liquid crystal display sector in mainland China accounts for 40.4%, significantly exceeding South Korea (13.3%), Japan (28.7%), and Taiwan (14.4%). In the industry of huge-measurement Lcd panels, mainland China accounts for 34.3%, surpassing South Korea’s 33.8%, position 1st in the planet.

In accordance to CINNO Investigate info-in terms of shipments, panel producers in mainland China accounted for 59.4% of total shipments in February 2020, close to 60%. With a industry share of 18.8%, Huaxing Optoelectronics surpassed BOE to come to be the world’s most significant Liquid crystal display Television set panel provider. BOE and Samsung rank 2nd and fifth.