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Company News >> In 2018, South Korea's LCD equipment manufacturers will rely more on the Chinese market
It is reported that Samsung LCD Co., Ltd. and LG Display have expanded their OLED panel production capacity and sales volume driven mainly by record shipments to China. South Korean LCD device maker revenues reached a new high in 2017.
Looking into 2018, China's investment in LCD devices will continue to increase as a proportion of global investment in the industry. The dependence of LCD device suppliers in China on the purchase of LCD panel makers in China is expected to continue to increase.
Among the major equipment suppliers of Samsung Display, AP Systems' revenue in 2017 reached a new record of nearly 1 trillion won (approximately 900 million U.S. dollars), of which 90% of the revenue comes from laser stripping for producing flexible OLED panels ( LLO) system sales. The other two suppliers, Semes and SFA Engineering, had revenues of about 2 trillion won in 2017 respectively.
The revenues of Jusung Engineering and DMS, two suppliers of LG Display, were approximately KRW 270 billion. Equipment suppliers Avaco and Invenia all achieved revenues of nearly 180 billion won, while Viatron Technologies' sales revenue exceeded 100 billion won.
However, the combined capital expenditures of Samsung Display and LG Display are expected to drop to 13-15 trillion won in 2018, which is lower than the 21 trillion won in 2017 and is expected to have a negative impact on the operation of LCD device suppliers in South Korea.
Since the proportion of LCD devices exported to China accounted for more than 50% of the total exports of LCD devices in Korea in 2017, and this proportion is likely to increase in 2018, the proportion of Chinese panel makers purchasing LCD manufacturing equipment in Korea will increase. The business prospects for Korean liquid crystal display devices are crucial.
 

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