The cooperation between Samsung Electronics and Samsung Display is attracting attention because the commercialization of a quantum dot (QD) display TV, which is being attempted for the first time in the world, has become visible, and it is evaluated that it has laid an important foothold to grow into a next-generation large display technology.
QD Display is a display that enhances color reproduction by putting a quantum dot color filter on a blue organic light-emitting diode (OLED) that emits blue light. As it is the first technology to be tried in the world, there were great concerns about commercialization and marketability. Particularly, the evaluation of poor competitiveness in terms of quality, yield, price, and production capacity was mixed.
The Q1 line currently built by Samsung Display can only be made about 30,000 units per month based on 8.5G ledgers and 2 million units per year based on 50-60-inch TVs. Considering that the global TV market is over 200 million units per year, this is a small amount, which is only about 1% of the total.
However, when Samsung Electronics adopts QD display panels, the story changes. With the choice of Samsung Electronics, the world’s largest TV maker, Samsung Display can expand its production capacity by making additional investments, and it will be advantageous in finding other customers. This is because it is a display recognized by the world’s number one TV company.
According to the industry, Samsung Display is known to have spent about 3 trillion won so far out of a total of 13 trillion won planned for QD investment. With the cooperation with Samsung Electronics, the possibility of expanding the QD display production line in earnest is now raised.
Kim Ki-hyun, director of Stone Partners, a display market research firm, predicted, “There is a possibility that a TV maker may require an expansion because a stable supply of panels is important for TV manufacturers.”
It is expected that Samsung Display will start securing not only Samsung Electronics, but also other customers by expanding its mass production capabilities.
The commercialization of QD displays is also closely related to the competitiveness of the domestic display industry. Samsung Display and LG Display have been leading the global display market so far, but concerns have continued regarding the next-generation large display. This is because, as the LCD market became the red ocean due to the rapid growth of Chinese display companies, supported by the government, there was insufficient preparation for next-generation large displays to replace LCD.
LG Display possesses white (W)-OLED, and Samsung Display possesses QD display technology, but both companies have not reached the’convergence’ enough to lead the global market. LG Display’s W-OLED has grown to a point where it is aiming to sell 8 million units per year this year at a speedy pace. It is noteworthy whether Samsung Electronics and Samsung Display will make a breakthrough as they strive to commercialize QD displays.
It is expected that Samsung Electronics and Samsung Display will discuss specific negotiations and cooperation plans for commercialization of QD display TVs. The key is how the two companies narrow down their different eye levels. It is known that the production cost of QD display is considerably higher than that of W-OLED.
It is highly likely that Samsung Electronics will strongly demand securing price competitiveness. Samsung Display seems to be tasked with stabilizing yield and quality, and establishing a mass production system. It is expected that the launch timing, scale, and product position will be determined according to the results of future coordination.
It is known that Samsung Display plans to mass-produce QD display panels in November. Samsung Electronics is expected to apply a new premium TV in 2022.
In this regard, a Samsung Display official said, “We cannot confirm the contents of the customer.”
Reporter Gunil Yoon [email protected]