Danish Kapoor
Danish Kapoor

China is ready to enter the OLED TV market and put South Korea on the ropes

China is preparing its entry into the OLED television market. And, furthermore, he plans to do it through the front door. The Asian media that closely follows the movements that Chinese companies that have the capacity to manufacture are making. large format organic matrices They predict that their landing is imminent. And yes, it makes a lot of sense if we keep in mind that we have known since mid-2022 that the Chinese company BOE intends to fight head-to-head in this market with Samsung and LG.

However, this is not the only Chinese company that is preparing to put OLED televisions in stores. TCL presented at the beginning of last June a 65-inch television that incorporates a folding organic matrix with 8K resolution and inkjet printing technology. It is evident that what this company was pursuing when it showed this device was to demonstrate brute force. Punch the table. The times when LG had a monopoly on this market have passed away.

South Korea has compelling reasons to apply itself very thoroughly

BOE is no newcomer to this industry. And its South Korean competitors know this better than anyone. In fact, it supplies OLED panels to Apple, as well as Samsung and LG, as well as other manufacturers of mobile phones, laptops and other devices. It remains to be seen whether BOE’s large-format organic arrays They have comparable overall quality to that of the panels produced by its two South Korean competitors, but we can be sure of one thing: its emergence into the market will inevitably trigger a drop in prices.

BOE and TCL have made a display of brute force with the purpose of putting their innovation capacity on the table

At the end of last May, BOE presented a spectacular 110-inch 16K LCD screen at the Display Week 2023 fair. It is the first in the world to implement this resolution. It is not a television with an organic panel, but its purpose was the same as TCL when it unveiled its foldable 8K OLED television: to make a show of strength and put its capacity for innovation on the table. In fact, these two companies share a hypertrophied technological and economic muscle that they will surely resort to to maximize their competitiveness and fight in this market with guarantees.

Currently the large format OLED matrix industry is in the hands of LG and Samsung, but it is clear that the panorama is about to change. BOE, TCL and perhaps other Chinese companies they are going to compete with them in the short term. It is even possible that their first televisions will reach stores in China before the end of 2023. For South Korea this outcome is a problem. And it is because for this country the OLED panel industry is strategic, just like the semiconductor or battery industry.

This means that its main actors have the financial support of the country’s Government, which will reduce the taxes they currently pay by up to 8% and will make available a tax credit of up to 25% if they begin the construction of a new organic panel factory on South Korean soil before the end of 2023. The South Korean Ministry of Economy and Finance has included OLED technology in the national list of strategic technologies for a good reason: the entry of BOE and TCL into this market represents a threat.

The South Korean Ministry of Economy and Finance has included OLED technology in the national list of strategic technologies

However, for us, the users, it represents an opportunity. The opportunity to access televisions with organic panels at much lower prices than current ones. Right now all the OLED televisions that we can buy in stores have a price that clearly places them in the high and premium ranges. Occasionally we can access very tempting offers, but this should not mask the reality: these televisions are not available to everyone. The entry of China does not guarantee that the panorama will change in the short term, but in the medium term it will. We can be sure.

More information: DigiTimes Asia

Danish Kapoor