South Korea display giants LG and Samsung recently announced plans to halt production of LCD panels by the end of the year. The companies are poised to focus on OLED panels production from next year. This development is viewed as a good one in China as it is expected to open up more opportunities for domestic companies.

In a recent CCTV financial dialogue program, TCL founder and chairman Li Dongsheng aligned with this point of view. He stated that from a strategic perspective, Samsung and LG’s withdrawal from the LCD industry will bring opportunities to Chinese companies. He believes the reason for the withdrawal has to do with an adjustment to the global industry structure. In clear terms, the industry is moving away from LCD and rapidly toward the use of OLED panels. Both South Korea giants will focus more on flexible display products such as QLED and OLED technology.

EDITOR’S PICK: Xiaomi’s Aqara officially unveils its range of smart home products in the US

Chinese companies have already established a dominant position in LCD manufacture, especially in large-screen displays. Chinese manufacturers, including BOE, Huaxing Optoelectronics (a subsidiary of TCL Holdings) and so on dominate the LCD market. Li expects this advantage to be further expanded with future development.

Despite their dominance in the large-display LCD industry, the Chinese firms are expected to face greater competitive pressure and challenges in small and medium screens. In the small and medium-sized field, including OLED and the next generation of new display technology, there will be stiff competition.

Samsung was once a leading force in the LCD panel market. The company established two LCD panel factories in China and two LCD production lines in South Korea. However, stiff competition in the LCD market in recent years and a drop in LCD panel prices may have prompted the tech giant’s decision to abandon the LCD panel market.

UP NEXT: Alleged Huawei Nova 7 and Nova 7 Pro 5G benchmarked on Geekbench

(source)

The post Samsung & LG’s Withdrawal from LCD market will bring opportunities for Chinese companies appeared first on Gizmochina.