Samsung Electronics Co. showcases QLED 8K TV during Consumer Electronics Show held in Las Vegas on Jan. 9. (Yonhap)
SEOUL, Feb. 12 (Korea Bizwire) — With Samsung Electronics Co. investing in QD-OLED technology, which will substitute large TV panels, there is a possibility that the company will reintroduce large OLED panels after a seven-year break.
Even though company officials have confirmed that nothing has been decided yet, concern about profitability will eventually lead to investment in QD-OLED.
According to industry analysts on Monday, Samsung Display Co. is expected to hold an investment review committee in April to decide on investment in QD-OLED technology, and will likely bring in equipment by the end of this year to start mass production by the end of 2020 or early 2021.
QD-OLED uses blue as a light source among the three primary colors of light (red, green, and blue), and puts red and green QD filters on top of it.
It is quite different from LG Electronics Inc.’s WOLED, which uses white. It is evaluated that QD-OLED is better than WOLED in terms of productivity and color reproducibility.
Although Samsung Display produced 55-inch OLED TV panels in 2012, it stopped production in the following year due to problems regarding securing yields ahead of mass production.
One of the reasons Samsung is considering investment in QD-OLED is the profitability of its TV business.
Until now, Samsung has repeatedly announced that it will have two strategies regarding its TV business. However, Samsung is falling behind the competition with LG, thus increasing the odds that it will invest in QD-OLED.
Samsung Electronics began sales of its QLED 8K TVs in South Korea, the United States, Europe and Russia in late 2018 and plans to launch the premium lineup in 60 countries by March. (image: Samsung Electronics Co.)
Samsung Display’s profitability is also related to the investment.
Although Samsung ranks first in the market for small and medium OLEDs typically used in smartphones, there is a risk since demand for smartphones is expected to eventually decline.
Intensified competition with Chinese manufacturers also affects profitability.
Samsung is expecting to increase profitability by introducing new foldable smartphones, but it is difficult to predict supply and demand. As such, Samsung is expected to shift its focus from small OLED to large OLED technology.
On the other hand, some have criticized Samsung for being ambiguous about its investment plans.
Since there have not been many investments in large displays by major electronics manufacturers, the stock price of equipment, materials and parts needed to produce large panels have been adversely affected.
For this reason, some analysts are suggesting that Samsung’s talk of a return to the production of large displays is a strategy to encourage QD-OLED investment.
D. M. Park (dmpark@koreabizwire.com)
