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LGE to Compete with UHD OLED TV Price in 2016

On July 29, LG Electronics announced its earnings results at LG Twin Towers in Yeouido, South Korea. Representatives of each business departments, including LGE’s CFO Jung Do Hyun, explained the second quarter results and third quarter outlook.

 

Regarding the poor sales results of this quarter, LGE gave the decrease in sales and business profit in most of the growth market as the reason. The decrease was analyzed to be from sudden fluctuations in foreign exchange rate which led to global economic downturn. Essentially, it seems LGE believes that their market strategy is not at fault and that the decrease in demand in TV market and weaker global foreign exchange rate led to the fall in profit.

 

The competitiveness of Home Entertainment (HE) business department increased through strengthening product mix focusing on premium products. However, due to the sudden fluctuations in foreign exchange rate and seasonal factors the global market diminished and an 11% decrease in sales was recorded compared to the previous quarter. Jung explained that the sales in Europe, Central and South America, and Russia increased but most of the growth market showed economic downturn due to weak foreign exchange rate which led to the decrease in sales. However, he forecast that in the third quarter, the premium TV market will continue to grow and increase the UHD OLED TV sales.

 

Additionally, Jung commented while low-to-medium priced products will be released, sales activity will focus on premium products and announced as the yield of UHD OLED TV panel is increasing rapidly, they will be able to compete in price from mid-2016. He also made a positive estimation that the market will show a growth rate once the foreign exchange rate fluctuations stabilize.

 

According to UBI Research, there is approximately US$ 2,000 prices difference between UHD OLED TV and SUHD TV, looking at 55inch size in early July. Within less than a month, on July 24, the difference was reduced to US$ 1,700; it is estimated that UHD OLED TV will be able to compete against SUHD TV price from next year.

 

Answering a question on competition with Chinese companies, LGE clarified that although their growth is rapid, LGE is ahead in terms of patents, quality, and brand power. Although they mentioned that Chinse companies have growth foothold with their large market share within domestic market in China, LGE concluded that the real global growth is not very great. However, LGE admitted that Chinse companies are definitely superior in cost effectiveness. To combat this, LGE announced they will focus on premium products and increase competitiveness, and form strategy of supplying non-premium products to the growth market.

 

LGE recorded sales of approximately US$ 1,600,000,000, a 0.5% decrease from the previous quarter, and business profit of approximately US$ 200,000,000, a 20% decrease from the previous quarter.

LGD Expands Market Through Active Support of OLED

150724_LGD, OLED 적극적인 지원으로 시장 확대2

 

On July 23, LG Display announced its earnings results at LG Twin Towers in Yeouido, South Korea. During this event, LG Display revealed its decision to invest approximately US$ 900 million in Gen6 flexible OLED line in order to lead the flexible OLED market.

 

LG Display’s CFO, Kim Sang-don, explained that flexible OLED Gen6 line investment was decided at the board of directors meeting on July 22, and was made official on the morning of July 23. Kim added that the decision was reached so that LG Display can lead the OLED business in terms of technology and to occupy initial market in foldable and rollable technologies. He also commented the monthly capa. of the flexible OLED line will be 7.5K.

 

Regarding large area OLED panel, it was emphasized that this year’s panel production target remains to be 600,000 units and 1,500,000 units next year, same as the ones announced during the Q1 earnings results presentation. It was also revealed that 34K, approximately 9K higher than current capa., will be in operation in 2016. Addressing the concern of oversupply of next year’s 1,500,000 units while the OLD TV market is still small, LG Display suggested the solution of increasing the demand by active promotion from the second half of this year.

 

Despite the fall of mid to large size panels’ sales price, from the enlargement of sets and AIT technology applied sales performance, the business profit of approximately US$ 4,000 million was recorded. This is a 34% decrease compared to the previous quarter but a 199% increase from the same period in 2014. LG Display estimates that the sales will increase in the third quarter due to seasonal factors and panel’s enlargement trend.

 

OLED 8K TV, When Would It Be Possible?

The current TV market trends are curved design, large area, and high resolution. LCD and OLED, competing to lead the next generation display market, have both released curved large size premium TV of 55 inch screen or larger. In terms of resolution, UHD grade products are being released following FHD, and displays with higher resolution are being required.

 

Looking at Korea and Japan’s contents roadmap, UHD resolution OLED TV development is essential as Japan is aiming to test 8K contents broadcasting in 2016, and Korea in 2018. Korea began test broadcasting UHD from 2013, and is aiming for regular application in 2016 for satellite/cable channels and 2018 for broadcast channels. Considering active release of UHD TV occurred in 2014, 8K TV’s market release is estimated to be in 2019-2020. It is analyzed that approximately 3 years are left to prepare for 8K TV mass production.

 

At present 8K LCD TV have been revealed by key panel companies through various exhibitions, and its mass production is set for 2016-2017. However, only up to 4K OLED TV have been unveiled, falling behind LCD in terms of resolution.

 

The keys to 8K OLED TV actualization are pixel size reduction and aperture ratio achievement. LCD uses 1 transistor and capacitor per pixel whereas OLED requires 2 or more transistors and 1 capacitor per pixel. This leads to OLED’s difficulty in acquiring adequate aperture ratio and reducing pixel size compared to LCD. The key solutions are developments of top emission structure of OLED panel for TV, instead of bottom emission that produces light through TFT, and emitting materials that can generate sufficient light efficacy from bottom emission produced aperture ratio.

 

OLED demonstrated its strength as display by achieving what LCD took more than 10 years in 2-3 years. Considering this, although approximately only 3 years are left to mass produce 8K display, it is anticipated that OLED is capable of catching up to LCD’s resolution.

 

4K OLED TV by LG Display and Samsung Display

4K OLED TV by LG Display and Samsung Display

New Solution for Next Generation OLED Lighting

Professor Lee Taek Seung of Chungnam National University

Professor Lee Taek Seung of Chungnam National University

 

Professor Taek Seung Lee and Jongho Kim (Chungnam National University’s Department of Advanced Organic Materials and Textile System Engineering), and Professor Jin Sung-Ho and Park Juhyeon (Pusan National University’s Graduate Department of Chemical Materials, and Institute for Plastic Information and Energy Materials) authored a paper titled ‘Synthesis of conjugated, hyperbranched copolymers for tunable multicolor emissions in light-emitting diodes’. For 2015 June issue, Polymer Chemistry, published by the Royal Society of Chemistry, selected it as its back cover.

 

The paper discusses research of polymer material applied to solution process and explains that through polymer structure in the form of hyperbranched red, green, and blue monomers, diverse colors, including white, can be actualized depending on the amount of each monomer. Existing OLED lighting used R/G/B or YG/B stacking structure to produce white OLED, complicating the process. Although a method of producing white by combining R/G/B together is being developed, energy displacement between R/G/B can cause unwanted colors. However, if the R/G/B monomers can be introduced to polymer structure as hyperbranched forms as the paper suggests, the energy displacement can be minimized when the polymer solidifies which makes it easier for the colors to be realized.

 

Professor Lee revealed that hyperbranched polymer materials were used in the research and that as white can be produced from just one polymer material, simple process can be used for the production.

 

The patent for this technology has been applied (application number 10-2012-0091350) in Korea. It is anticipated that this will become a key technology for reducing the next generation OLED lighting production cost.

 

원리

China’s Gen10.5 Investment, Korean Display Companies’ Countermeasure?

At the 10th National Research Development Industry General Workshop in Display (8-10 July) in Muju, South Korea, industry-academy experts gathered and held a discussion on the future display strategy under the heading ‘Korean Display Industry Crisis, What is the Solution?’.

 

At the previous keynote speech, vice president of LG Display, Yoon Sooyoung explained that the key points for the third revolution will be design innovation, design freedom differentiated though real image, and picture quality that can closely resemble visual reality. He also added that the third display is OLED that can actualize various advantages such as transparency, flexibility, and high picture quality at once, and considering material/component and mass production technology status, OLED will also be able to achieve competitive prices soon.

 

Samsung Display’s executive director Hye Yong Chu forecast next generation display will be smart display, human friendly, holographic, and disruptive innovation. Particularly she estimated that thorough size and design innovation, flexible display will be able to create new application and market and that flexible OLED will form the core.

 

The shared opinion of Samsung Display and LG Display, key Korean display companies, at the keynote session was Korean display industry’s need to lead the next generation display market in order to prepare for China’s pursuit and requirement of active participation and cooperation from industry-academy to achieve this.

 

During the panel discussion that followed the keynote session, many different opinions were suggested regarding Korean display industry status from academy-industry. Of China’s BOE’s Gen10.5 investment, Samsung Display’s Chu disclosed that investment at the right moment was more important than preemptive investment; the focus will be curved and edge display market expansion and widening the technology gap with latecomers, and investment will be carefully considered before making a decision. LG Display’s Yoon also explained that areas where cost innovation are possible are limited even with investment is carried out as the current display market is different from previous ones. He added that Gen10.5 investment has to be deliberated and emphasized that focus should be on how to make OLED competitive.

 

Against the China’s aggressive investment on Gen8 or higher, Samsung Display and LG Display’s positions are analyzed to be of same opinion of carefully considering investment while pioneering the market maximizing the existing technology prowess.

 

미래 디스플레이 전략 대토론회

 

OLED Rises to Become Purple Ocean of Existing Lighting Industry

OLED is receiving much attention as the next generation lighting as a greener lighting that can replace existing incandescent and fluorescent lights and reduce energy consumption, as well as lighting that can create new market. According to this trend, many organizations are analyzing OLED lighting industry in diverse directions and presenting the analysis.

At the 5th LED Industrial Forum which was held recently together with LED & OLED Expo 2015, Song Hyokyung, a senior researcher of WIPS, gave a presentation on the topic of OLED lighting industry’s patent trend and market status. She explained that as OLED lighting sector is a new market with a great growth potential, the technology development competition is fierce, and presented SWOT analysis results of Korean businesses.

For Korean OLED lighting industry’s strengths, Song gave examples which included world’s highest quality of OLED, AMOLED development and mass production technology, production ability, and diverse convergence technology solution. As for the opportunity factors, Song suggested application expansion through convergence with flexible technology, and increase in demand as the lighting market expands. On the other hand, Song revealed that the deficiency in original key technology on OLED material and components and the lack of mid to long term strategy regarding new technology development could be a weakness for Korean industry. She also gave China’s pursuit, possession of intellectual property rights by leading companies, and appearance of new light sources such as QLED (quantum dot emitting diode) as factors that could pose threat. However, OLED lighting induces warm atmosphere as well as being environmentally friendly and a future convergence industry. With these factors, Song concluded that if these weaknesses and threat factors can be overcome, OLED lighting will be able to show higher CAGR than other lighting markets.

UBI Research analyzed OLED lighting industry via STEEP analysis method in OLED Lighting Annual Report, published in May, 2015. UBI Research analyzed that as income increases, interest in interior design light using specialized lighting, other than necessary lighting, increases. Also, in terms of technology, OLED lighting projects in Korea, the US, and Europe are actively being carried out and estimated that the technology development will gain speed through related technology integration.

Economically, UBI Research analyzed that the market entry barrier is not high as the OLED lighting industry is not monopolistic. In terms of environment, incandescent lighting’s carbon production and fluorescent light’s mercury are becoming big concerns. Based on these factors UBI Research forecast that demand for green lighting, such as OLED lighting, will increase. Policy wise, OLED lighting industry clusters were formed and are supported by Korean and Japanese governments. As OLED lighting related projects are also being vigorously carried out OLED lighting industry is expected to become a high growth industry.

Based on both analyses OLED lighting is anticipated to be an industry with much potential for growth. If speedy technology development occurs and demand for environmentally friendly lighting increases, it is expected that the OLED lighting share of total lighting market will rapidly increase. UBI Research estimated that total OLED lighting market will grow at CAGR of approx. 70% from 2016, and show US$ 10,000 million revenue in 2025.

 

LG Chem.’s Flexible OLED Lighting, Euroluce 2015

LG Chem.’s Flexible OLED Lighting, Euroluce 2015

 

[LED/OLED EXPO 2015] Low Cost OLED Lighting Panel Production, QD Film Provides the Solution?

One of the reasons that OLED lighting is not becoming commercialized, despite its diverse advantages compared to other lightings, is its high price. The most fundamental way to reduce OLED lighting panel cost is investment in OLED lighting panel mass production line. Price reduction for components and materials is also an important factor.

 

The OLED lighting panel that is currently being mass produced has red/green/blue or yellow/blue stack structure. Also the use of tandem structure of more than 2 stacks to increase efficiency makes the process complex, lowers the yield, and increases the amount of materials used, and is becoming a key factor in increasing the production cost.

 

At LED/OLED Expo 2015, Cheorwon Plasma Research Institute (CPRI) displayed technology that produces white by applying light extracting film that contains red and green quantum dot (QD) material on blue OLED. CPRI forecasts that this technology of QD film applied blue OLED will be the solution for lowering OLED lighting panel production cost.

 

CPRI’s senior researcher Yong Hwan Yoo explained, “When QD light extracting film is applied to blue OLED, the evaporation processes are reduced compared to existing RGB or YB tandem structure OLED lighting. This could lead to production cost reduction as the yield increases and material cost decreases. If the QD purity improves, as well as blue material’s lifetime and efficiency, it is anticipated that the efficacy will match that of RGB or YB tandem OLED lighting panel.”

 

CPRI exhibited LED caps to be used for mascots at the opening/closing ceremonies of PyeongChang 2018 Winter Olympics, ultimately aiming for manufacturing them using OLED lighting panel instead of LED.

 

 

[LED/OLED EXPO 2015] O’CLESS Propels OLED Lighting Commercialization

At LED/OLED EXPO 2015 (23 – 26 June), HaeChan Design revealed that through OLED lighting specializing brand O’CLESS they are expanding into international market as well as within the domestic market in Korea.

 

HaeChan Design was established in July, 2013, and launched OLED lighting brand O’CLESS. O’CLESS is producing using the combination of LG Chem.’s OLED lighting panel, and their own designs and ideas.

 

In this exhibition, O’CLESS presented diverse lighting such as night light, portable light, stand light, mirror light, and rail connection down light. Particularly, smart system that can control down light using smartphone drew much attention from the visitors.

 

Seungchul Oh, the President of HaeChan Design, reported that they “began exporting to Japan and China following the domestic release in Korea”, and they are planning to “expand the market as a global OLED lighting specializing business once the new business establishment in Innovation City Chungbuk is completed”. Regarding the price issue, which is OLED lighting market’s biggest obstacle, Oh viewed future of OLED lighting market in a positive light: “P company’s night light is being sold for 200,000-300,000 KRW (200-300 USD) but even with application of OLED and Retinispora wood, O’CLESS’ product has competitive edge with approx. 100,000 KRW (100 USD). Although panel’s price is essential as design and practicality are more important in the lighting industry, application creation appropriate for the high cost of OLED is more important. OLED panel price has already fell considerably and will continue to do so and therefore can compete against LED or other lightings in terms of price.”

 

In February this year, HaeChan Design installed approximately 1,000 OLED desk lamps with LG Chem.’s OLED lighting panels in Seoul National University’s library. They also set up booths in 2014 LED/OLED Application & Technology Show and 2015 Kyunghyang Housing Fair, focusing on O’CLESS marketing.

 

O'CLESS Booth, LED/OLED EXPO 2015

O’CLESS Booth, LED/OLED EXPO 2015

Next Generation Display Requires Next Generation Ecosystem

It seems like new milestones are reached in the display industry every month. From a consumer’s point of view, it was not that long ago that HD (high definition) sets entered the market and revolutionized the picture screen. However, now next generation display with even higher resolution, UHD (ultra high definition) are being actively developed. 4K resolution sets, LCD and OLED, are already on the market. 8K panels have been part of exhibitions for a while now, and the world’s first 10K 82inch LCD panel was revealed in SID 2015 (31 May – 5 June).

However, in order to move forward to having the next generation of displays in consumer sets, the whole ecosystem of surrounding industries also has to evolve together.

As mentioned above, 4K sets, as well as 4K recording devices, are already commercially available. The 4K content is, unfortunately, still quite restricted at present. However, streaming and subscription services provide or plan to provide increasing amount of UHD content in near future, and UK’s BT is also launching an UHD box to host Europe’s first 4K TV channel.

Another important part of the ecosystem is connectivity. For over a decade, HDMI (high-definition multimedia interface) has been the favored connection for home entertainment systems and on HDTVs, as well as some PCs and monitors. However, if the interconnect development does not match the capability of the set or the content, then the intended display quality cannot be met. To cope with this, HDMI 2.0 which can handle 4K was released. DisplayPort, another interface standard, can also support 4K, but it also provides greater color depth, a more robust and stable AV link.  DisplayPort is enabled to work over the new USB-C connector, and an 8K enabled version will be released this year.

It is not enough for one or two particular sectors of an ecosystem to evolve to lift an entire industry to the next generation. For a healthy and efficient market to be formed, agreed upon objectives, compromises, specifications, and schedules have to be in accord. VESA (Video Electronics Standards Association) is an international non-profit corporation that facilitates this, as is the recently established UHD Alliance. At SID 2015, a VESA representative explained that “for the industry as a whole to be effective and successful commercially, cooperation between businesses of all sectors, including competitors, is crucial”. This can only benefit consumers and businesses alike.

Whether the display market will be led by LCD or OLED, it is certain that the next generation display requires a next generation ecosystem.

Samsung Display's SUHD TV, WIS 2015

Samsung Display’s SUHD TV, WIS 2015

 

 

[SID2015] What is the Answer for Flexible & Transparent with Excellent Image Quality?

In SID 2015 Display Week (31 May – 5 June), LG Display’s CTO In Byeong Kang gave a keynote speech. He explained that future display in everyday lives will be actively applied to home, office, street, and mobile device areas through various applications including window, ceiling, mirror, kitchen, automotive, desk, commercial, and wearables. He added that OLED will be the answer to key technology of flexible display (curved, rolling, and folding), large-area transparent, and excellent image quality.

Key issues of flexible are bending radius and reliability. Kang emphasized that in order to reduce the bending radius, thinner substrate is needed, and to improve reliability, new material, components development, and internal and external shock mechanism research is important. He mentioned that although OLED is good for transparent’s transparency, light control, and reflectivity as key technology, LCD and LED display also have advantages of their own in transparent display realization. Kang concluded the presentation with the emphasis on the need of expansion into automotive, watch, architecture, and furniture companies from existing panel, material, and components companies’ ecosystem for commercialization of flexible and transparent display.

LG Display is currently mass producing plastic OLED panel for smart watch, and aiming for 80% automotive display market occupation in 2018 with approx. US$ 2,000,000,000,000 of revenue. In SID 2015, LG Display exhibited 18 inch rollable OLED panel, and 12.3 inch automotive OLED panel. Through the OLED and ecosystem’s expansion, it is anticipated LG Display will lead flexible and transparent display market following OLED TV.SID2015