China already dominates the screen market. The US and Japan have decided to draw up a plan to stop their advance
China currently accounts for almost 60% of the LCD panel market which are used in the manufacture of monitors, televisions and other display devices. The growth of Chinese companies BOE and TCL has caused South Korean panel manufacturers, such as LG Display or Samsung Display, gradually abandon LCD technology to dedicate their resources to other, more profitable innovations, like OLED technology. South Korea produces most of the organic matrices (OLED) that we can find in our televisions and mobile phones, among other devices, but China’s market share in this segment does not stop growing. In fact, It is already close to 40% in OLED panels for smartphones, and presumably little by little it will also grow in the segment of large-format OLED matrices for televisions and monitors. However, South Korea is not the only country that is suffering from China’s monumental onslaught. Japan, Taiwan and the US also fear that their display device manufacturers will end up in the hands of Chinese suppliers, something that is essentially already happening to a large extent if we stick to LCD technology. This dependency also acquires a critical nature in the field of screens used in military systems. Japan Display will be the great beneficiary of the very probable agreement between the US and Japan During the 80s, 90s and the first decade of the 2000s, Japan led the screen market with its cathode ray tube televisions, and later with its first LCD and plasma panels. However, in the early 2000s, Japanese companies made a strategic mistake: they bet everything on plasma technology because they believed that it would end up taking over LCD technology. South Korea, however, opted for the production of these latest matrices, and finally Samsung and LG won this war. The state-of-the-art plant that Japan Display plans to build in the US will cost about $13 billion Japan paid a very high price for this strategic mistake: it lost a large part of its share in the market for the production of panels for display devices. Twenty years later, the US and Japanese governments are determined to amend it to compete with the solutions coming from China. And they plan to do it by investing, according to Reutersa package of 550 billion dollars coming from Japanese funds. Some of this money will presumably be used to build a state-of-the-art display manufacturing plant in the US. It will cost about $13 billion and will be managed by Japan Display, a consortium created in 2012 as the result of the merger of the panel production divisions of Sony, Hitachi and Toshiba. This plan seeks to limit the dependence that American and Japanese manufacturers have on matrices from China, especially in the field of technology militaryrbut they are not going to have it easy. And it is that the consulting firm Counterpoint Research It predicts that China will expand its share of the display market to reach 75% in 2028. Image | Generated by Xataka with Gemini More information | Reuters In Xataka | LG and Samsung have a new pact that no one expected, according to Reuters. One who wants to shake up the television market In Xataka | China is devouring the television market. So much so that Panasonic is considering abandoning it