A Chinese corporation recorded nearly 50% market share in the global organic light-emitting diode (OLED) market in the second quarter of this year. Chinese corporations such as BOE, Visionox, and CSOT are making massive investments in facilities to produce next-generation OLED panels, including 8.6-generation OLEDs for IT use. This is interpreted as an effort to accelerate their strategy in the IT OLED market, which has emerged as a battleground supported by a strong domestic market and government subsidies.
According to market research firms such as Counterpoint Research, in the second quarter of this year, Chinese BOE, Visionox, and CSOT accounted for 38% of the global OLED market in terms of shipments, which is an increase of about 3 percentage points compared to the previous quarter. BOE ranked second in the world with a 15% market share, Visionox was third with 12%, and CSOT was fifth with 9%. Samsung Display led the market with 37%, while LG Display recorded a similar market share of 9% as CSOT. When the total market share of Chinese corporations like Everdisplay and Tianma is combined, it is analyzed that the market share approaches 50%.
China is rapidly increasing its display market share, buoyed by a strong domestic market and government subsidies. Counterpoint Research noted, "As the supply chain of the Chinese display industry matures and cost competitiveness improves, Chinese-made OLED panels are quickly dominating the global market." According to Counterpoint Research's latest display production capacity report, China's display production capacity is expected to expand from 68% of the global total in 2023 to 75% by 2028.
In particular, Chinese display corporations are ramping up investments in 8.6-generation IT OLED facilities. BOE plans to invest about 11 trillion won in 8.6-generation IT OLEDs by next year. Visionox is also investing a similar amount into the mass production line for 8.6-generation IT OLEDs by 2027. CSOT plans to announce its mass production plan for 8.6-generation panels in the second half of the year.
This seems aimed at seizing the quickly growing market for tablets, laptops, and gaming OLEDs. The 8.6-generation uses a glass substrate that is about 2.25 times larger than the existing 6-generation (2290mm x 2620mm) OLED panels. Its high production efficiency makes it suitable for producing OLED panels for IT devices such as tablets, laptops, and monitors.
Counterpoint Research stated, "In the second quarter, global OLED panel shipments increased by 5% compared to the previous quarter, but decreased by 2% year-on-year." However, it noted that both monitors and laptops recorded double-digit growth, further illustrating that IT OLED panels are establishing themselves as a new growth driver.
Samsung Display, the industry leader, made a facility investment of about 4.1 trillion won in its 8.6-generation IT OLED production line with a goal of mass production next year. In a conference call for its third-quarter earnings last year, Samsung Display mentioned, "The production facility for 8.6-generation IT OLEDs is progressing according to the planned schedule aimed at mass production in 2026, and the main equipment has been delivered and is currently being installed. We are concentrating our capabilities on enhancing overall technology completeness." LG Display has not yet disclosed its investment plans for 8.6-generation OLED panels.
Nam Sang-wook, a researcher at the Korea Institute for Industrial Economics & Trade (KIET), stated, "Excluding BOE, which has stabilized its 6th-generation OLED panel technology, Visionox and CSOT have not yet secured a level of technological capability that could pose a threat. They seem to have swiftly carried out investments in 8.6-generation OLED facilities backed by the Chinese government's subsidy policy, but it remains to be seen whether this can threaten the domestic display industry. However, the delay in LG Display's facility investment is a concerning aspect."