LG display: OLED will become the core of display industry
Since 1998, China began to try to produce panels by itself. By 2018, 20 years later, China's panel industry has gradually upgraded from a marginal industry to the first place in production scale. Especially in the ten years from 2008 to 2018, with the support of policies, funds and technology, China's panel industry ushered in an unprecedented new situation.
With the increasingly fierce competition of next generation display technology, where will the panel industry go in the future?
And the panel industry in China has the most voice, of course, these professionals who have been engaged in the industry for many years. For this reason, we specially interviewed the leaders of famous panel companies at home and abroad, and asked them to talk about their views on the development of Chinese panel companies and world panel companies. This article is LG display executive Li Tinghan's unique understanding of the panel industry.
Industrial environment and policies promote the rise of China's panel industry
China is the world's largest panel production base and the world's largest consumer market. The sustained growth of the national economy in the past two decades. Driven by the accelerated growth of the middle class of the mainstream consumer groups, coupled with the high understanding and acceptance of new products and technologies, the new generation of innovation shows the driving force of technological growth and development. Secondly, the Chinese government's medium and long-term strategy and support for industrial cultivation. In the 12th Five Year Plan, the Chinese government classifies the display industry as one of the seven emerging strategic industries, the "next generation information technology industry", and focuses on cultivating it.
In this way, Chinese panel manufacturers have expanded their production bases, led the "rise of China's display industry" through technological innovation. Finally, they have equipped and improved the infrastructure of the whole IT industry, including the display industry, with many excellent talents leading the development of the industry.
Under the good industrial environment and the policy of Chinese government, Chinese panel manufacturers have led the rise of Chinese display industry through active technological innovation and expansion of production base.
OLED is the core display technology in the future
In the past two decades, the LCD market has grown from 200 million to 3 billion, with a growth rate of 15 times. As we all know, the growth of LCD market has stagnated in a saturated state, and the display industry needs new growth points urgently. The most important keywords of the "fourth industrial revolution" are artificial intelligence (AI) and Internet of things (IOT). In the age of artificial intelligence and Internet of things, the most important communication tool is display products, which we call dot (display of things), that is, all things are displayed.
Display products in the era of dot should have the following three characteristics: everywhere, anyform and borderless. At the same time, OLED is the display product with the above three characteristics and can be well presented. In the future, the most prominent feature of products is the freedom of image quality, design and form. In the era of dot, all objects will be equipped with display screen, so the freedom of design form is very important. As we all know, OLED is different from LCD without backlight, so it can easily achieve various display forms. That is, flexible, transparent, folding and other future display forms can only be realized through OLED.
A total of 20 trillion won is planned to be invested in China and South Korea by 2020
OLED will become a new driving force for growth in the future. With large and medium-sized OLED as the core, the business structure will continue to be adjusted, and finally the "overall solution provider" in the field of OLED will be the development direction. In this regard, LGD is currently investing in P10 plant in pozhou and OLED Fab in Guangzhou with large-scale OLED and plastic OLED as its center. By 2020, LGD plans to invest a total of 20 trillion won in China and South Korea. China is the largest TV market in the world. In order to expand the OLED TV market, it is necessary to set up a production base in China where LG display's core customers are located.
Since the middle and later period of 2000, it has kept close contact with Guangzhou government of China. The project of building the first 8.5-generation OLED production base outside South Korea was finally approved by the South Korean government in December last year. The project is jointly invested by Guangzhou municipal government and is under construction. The initial mass production scale of Guangzhou factory is 60000 pieces, which is planned to be officially launched in the second half of 2019. In 2014, LG display established the first overseas LCD panel production base in Guangzhou, which promoted the development of China's display industry and regional economy. The construction of OLED Fab in Guangzhou will also directly and indirectly affect China's upstream and downstream industry chain economy and create more jobs.
China will lead the fourth industrial revolution era
China is a country with unlimited potential in display industry. First of all, at the industrial level, it is the core of industrial growth to have a good display industrial group, and at the same time, there should be corresponding excellent talents. Moreover, the leaders of display industry should pay attention to and invest in the integrated technology related to display, so that the display application technology can be developed rapidly in the future. Secondly, on the consumer level, the increase of disposable income of Chinese consumers has driven the growth of the middle class population, and the high acceptance of new products and technologies supports the largest global demand.
We believe that in the near future, China will lead the era of the fourth industrial revolution.
OLED will become the best communication tool in the fourth industrial revolution based on the Internet of things
The basic feature of OLED technology is the excellent image quality, free appearance design and application expansibility brought by self illumination structure without backlight. For example, for large-scale products, in addition to the already launched differentiated products such as OLED wallpaper TV and OLED self voice TV, OLED rollable TV is also planned to be launched. In addition, OLED wall is set up in the world's largest Dubai Mall with ultra-thin design, and OLED tunnel and OLED wave dome are also set up in Guangzhou tower of China. OLED has penetrated into our life in various forms. In small and medium-sized products, in addition to the already popular OLED smart phones and wearable OLED smart watches, foldable and other forms are also used in vehicle products to become the best display technology. OLED is gradually recognized as the best communication tool in the fourth industrial revolution based on the Internet of things with anyform, everywhere, borderless and other technical features. LCD centered industries are believed to be quickly replaced by OLED.
Adjust the business structure with OLED and other new display technologies as the center
China has grown into the world's largest consumer market for large-scale TVs and small-scale mobile phones, as well as the world's largest production base. BOE, csot, Tianma and other panel manufacturers have been investing in expanding production, and soon the super size production line will be launched to further ensure the production capacity in LCD field. For example, in the past, Japanese panel industry was replaced by Korean and Taiwan manufacturers, at least in the competition of LCD products, the industry generally believed that other regions were difficult to compete with mainland China. Therefore, Korean display manufacturers, including LG display, need to adjust their business structure with OLED and other new display technologies as the center in the field of large-scale and small-scale display. In fact, this structural adjustment is advancing. The faster the structure change of Korean enterprises centered on new display technology, the more favorable the development of display industry in China and South Korea will be.