
Samsung is the overlord of the small-size OLED panel industry
According to the Korean media report, OLED is expected to become the main business as Samsung shows an increase in the gap between the OLED business and the LCD business. South Korea's financial industry estimates that OLED business revenue in the first quarter of 2017 will reach 4.5 trillion won (about 4 billion US dollars), a record high for the quarter, while occupying 61.6% of the overall revenue ratio. The LCD business revenue was approximately 2.49 trillion won, accounting for 38.4%. Compared to the first quarter of 2015, OLED revenue accounted for only 40% of the overall, and now OLED has successfully squeezed LCD, promoted to Samsung's display business.
In addition to Samsung Electronics' launch of the Galaxy S8 series of smart phones in 2017, Apple is expected to launch the iPhone 8 with its OLED panel in the third quarter. In order to get rid of the image of cheap products, other mainland mobile phone companies have also increased the adoption of OLED panels, making the demand for OLED increasingly large. According to the research agency's forecast, the annual compound growth rate of flexible AMOLED mobile phone panels will reach 88.2% by 2020. IHS Markit, a market adjustment agency, predicts that Samsung's display will be fully transformed into an OLED player in 2017, and OLED revenue will officially begin to surpass LCD.
In the face of changing market trends, Samsung has begun to adjust its production line and manpower allocation. At the end of 2016, the Asan L7-1 production line, which originally produced LCDs, stopped production and began OLED conversion operations. Many of the original employees in the LCD department were also transferred to the OLED production line. According to the report, in the third quarter of 2016, Samsung showed that the number of cadres responsible for the OLED business was 31, accounting for 30% of the total number of cadres, which was much higher than the 14% in the first quarter of 2015. The manpower of factory operators is mostly on LCD production lines. At present, there are about 12,000 OLEDs and LCDs each, and the level is generally close.

Samsung Dilemma Between OLED and LCD
Samsung shows that it is currently caught in the dilemma of shrinking and shrinking the LCD business. If it is fully focused on OLED development, it is worried that LCD dominance will be handed over to mainland competitors. In 2016, BOE began to build a 10.5-generation line LCD factory, scheduled to open in 2018. Huaxing Optoelectronics is also actively planning the opening of 11th-generation line factories. The large-scale investment and catch-up speed of the mainland industry has made the Korean factory unable to relax. The industry believes that the TV panels produced by mainland companies have the backing of the domestic demand market. If they continue to make aggressive investments, they will surpass the Korean panel makers in the future.
Another reason why Samsung's monitors cannot arbitrarily shrink the size of the LCD business is to ensure that the number of panels that can be used to supply Samsung Electronics is stable. Samsung Electronics decided to use QD TVs based on LCD panels to fight against OLED TVs. At this time, if LCD panels were purchased from outsiders, the competitiveness of the TV industry might be undermined. According to the industry, Samsung shows that it is an option and centralization strategy to increase LCD investment, prevent mainland industry from attacking, or devote all its efforts to investing in OLED. In the future, we must accurately estimate market demand and keep an eye on market volatility. This is definitely not a simple decision.
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