Several Chinese display manufacturers, including BOE, CSOT, Tianma, and Visionox, have joined forces to invalidate a patent owned by Samsung Display in the United States. The move comes as a response to Samsung Display’s previous attempts to halt imports of third-party displays that might infringe upon its patented technologies.

The Motive Behind the Challenge: Chinese Display Manufacturers’ Response to Samsung’s Patent Actions

The patent in question is U.S. Patent No. 7,414,599, which pertains to an “Organic Light Emitting Display (OLED) Device Pixel Circuit and Driving Method.” This particular patent was part of Samsung Display’s complaint filed with the US International Trade Commission late last year, seeking to prevent the importation of OLED panels that allegedly violated their patents and technologies.

Rather than confronting the Chinese manufacturers directly, Samsung Display opted to target importers. However, this approach seems to have provoked a retaliatory response from the Chinese display makers. By seeking to invalidate Samsung Display’s OLED patent, BOE, CSOT, Tianma, and Visionox may inadvertently imply their involvement in developing displays utilizing Samsung’s technologies without obtaining proper licenses.

This ongoing dispute began in early May when BOE initiated a series of patent infringement lawsuits against Samsung and its subsidiaries in China. Interestingly, these lawsuits targeted divisions unrelated to display technologies, such as Semiconductor, Investment, and Vision. Now, the Chinese display manufacturers are collectively aiming to invalidate one of Samsung Display’s OLED patents in the United States.

It’s worth noting that the trial for patent invalidation is yet to commence, as the Patent Trial and Appeal Board is currently evaluating whether to accept the claim. Further developments, in this case, will shed light on the potential ramifications for the involved parties and the wider display manufacturing industry.

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BOE Technology Group has just began the construction of the world’s largest production plant that will manufacture display modules for mobile devices earlier this week in the Qingdao, Shandong province in China.

The production site is expected to improve the Chinese display maker’s manufacturing capacity, which, in turn, would help boost its competitiveness in mobile display market. Notably, this factory would also help the city of Qingdao build a key national electronic information industry along with a high end research and development and manufacturing base, as per the company’s official website (Via ChinaDaily). The company’s total investment in this site is expected to be around 8.17 billion Yuan (roughly 1.27 billion US Dollars).

The project is situated in the Qingdao West Coast New Area in China. This new manufacturing site will produce display panels for mobile devices such as smartphones, tablet PCs, and even laptops. Interestingly, the company is also planning on the complete production of mobile phones and other products in the factory later in the future. The first batch of screen panels is expected to roll out by the end of next year.

Furthermore, the new site will also reach its full capacity in March 2024. BOE stated that its mobile screen panels have started mass production, and its new production site in Qingdao will help met its market needs display modules that will be used for medium to small mobile devices across the globe.

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The U.S currently holds the upper hand when it comes to semiconductor technology. That is why the ban on some Chinese companies from using US technology was hard felt. A few years back, most of the LCD panels in use by Chinese manufacturers in TVs, monitors, and other large-screen products were procured from Japan and South Korea.

But in recent times, domestic companies like BOE have been able to overtake manufacturers from Japan and Korea to ship the highest volume globally. China’s display manufacturers have predicted that this year’s domestic panel production capacity will historically account for around 55% of the global panel shipments.

This was made known at the 2020 Chongqing Micro-LED Industry Innovation Forum and Konka Semiconductor Display Technology and Product Launch Conference was held yesterday in China. The statement is credited to Liang Xinqing LCD Branch Secretary of the China Optics and Optoelectronics Manufacturers Association.

Liang Xinqing also disclosed that the global display device output value in the first three quarters of 2020 was US$82.723 billion, an increase of 8.6% year-on-year. The shipment area was 178 million square meters, an increase of 5.7% year-on-year.

The data for the first three quarters of 2020 in Mainland China shows that the TFT-LCD shipment area is 97.01 million square meters, which accounts for 54.5% of the global market and the output value is $26.685 billion US dollars.

However, in terms of AMOLED panels, lots of efforts are still needed to gain more market shares. In the first three quarters, the AMOLED shipment area was 1.09 million square meters, accounting for 0.6% of the global market, and the output value was US$2.709 billion.

At the same time, Liang Xinqing also mentioned domestic shortcomings. Currently, Japan has mastered the upstream core technology, South Korea’s OLED is the world leader. He added that China was currently gaining an advantage in terms of production capacity, but the technology structure is single and the entire industry chain is still to make significant headway.

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