South Korea’s two leading liquid crystal display (LCD) panel makers, LG Display Co. and Samsung Display Co., have successfully maintained their dominance in the global large-sized LCD market last year, but Chinese peers are catching up rapidly with aggressive investments.

According to market research firm WitsView Sunday, LG Display that produced 52.94 million units of LCD panels for TVs in 2016 retained its position as the world’s top LCD maker, followed by Samsung Display with 46.80 million units. But, each output of LG and Samsung was down 4.3 percent and 8.1 percent from the previous year after both Korean display suppliers have shifted their focus to produce more profitable panels.

LG Display has increased output of larger-sized TV panels, while Samsung Display has been transforming its LCD TV panel lines into small-to-mid sized organic light-emitting diode (OLED) panel fabs.

China’s BOE Technology Group Co. that churned out 43.64 million units of TV LCD panels in 2016 ranked third, elbowing out Taiwan’s Innolux Corp. After producing 22.4 percent more from the previous year, the Chinese panel maker has rapidly narrowed its gap with the top two Korean LCD makers. BOE has aggressively upped its investment in the LCD production last year, expanding the capacity of its 8.5-generation LCD (mother glass size of 2,200 × 2,500 millimeters) in Chongqing, China that mainly produces 49- and 55-inch TV panels. BOE is also building a 10.5-generation (3,370 × 2,940 millimeters) LCD production line with an aim to kick off the operation in 2018, while the Korean panel providers have no plan to add 10 or larger generation lines.

TV panel shipments for 2017 are expected to reach 257.8 million units, according to WitsView. It also projected that the average size of TV panels in 2017 would grow by nearly 2 inches to 45.4 inches.

WitsView forecast a tight supply of LCD panels in the 40- to 45-inch range this year, citing the closure of a few fabs of Samsung Display and LG Display, coupled with Sharp’s recent decision to stop supplying its panels to Samsung Electronics Co. In addition, an earthquake in southern Taiwan last February interfered with Innolux’s original production and shipment plans. Accordingly, prices for TV panels would inevitably go up in the first half this year.

By Lee Dong-in

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]