Dethroned Korean display makers could once again lead OLED shipments, but it's up to Trump

Everybody wants to know whether Trump will keep its pre-election promises – and when I say "everybody", I mean it. Even South Korean display manufacturers care for Trump's actions next year when he steps into office.

That's because president-elect Donald Trump has proposed to implement stricter economic measures against China. Optimism grew among Korean display manufacturers about the potential benefits of higher tariffs on Chinese exports, The Korea Times reports.

In 2023, Korea held a 33.4% share of the global display market, behind China’s 47.9%, according to the Korea Display Industry Association.

This marked a widening gap since Korea lost its market-leading position to China in 2021, a shift driven by the rapid rise of Chinese manufacturers. While Chinese companies have dominated the LCD market, Korean firms have pivoted to OLED technology, where they remain technologically superior.

However, the OLED market is also becoming more competitive, as Chinese brands like Huawei, Xiaomi, and Oppo increasingly adopt domestically produced OLED displays. This reminds me of the 5G-related US-imposed sanctions against China. They didn't prove to be quite efficient, given that the Huawei Mate 60 Pro exists contrary to the wish of US officials. Good luck trying to contain technology…

Anyway, back to the report. Data from market research firm Omdia reveals that Chinese companies surpassed their Korean counterparts in global OLED shipments in the first quarter of the year, holding 49.7% compared to Korea’s 49%.

This is a dramatic reversal from the same period last year, when Korean manufacturers led with 62.3%, while Chinese firms accounted for 36.6%.

Trump’s proposal to impose a 60% tariff on Chinese imports and a 10 to 20% tariff on goods from other regions is seen as a potential boon for Korean display makers. Industry insiders noted that the competitiveness of OLED suppliers hinges largely on Apple, which has been exploring ways to reduce costs by sourcing panels from China's BOE. If Trump’s tariffs materialize, firms like Samsung Display and LG Display could gain a pricing advantage over BOE.



Apple’s selection of BOE and LG Display as suppliers for its iPhone SE underscores the competitive dynamics. However, industry officials speculate that tariffs or restrictions on BOE could lead Apple to reconsider its reliance on the Chinese supplier, particularly for flagship iPhone panels.

The Republicans’ recent smash victory is another encouraging sign for Korean manufacturers.

John Moolenaar, chairman of the US House Select Committee on the Chinese Communist Party, has called for the Pentagon to blacklist Chinese display makers, including BOE. In a letter to Defense Secretary Lloyd Austin, Moolenaar highlighted the sharp growth of Chinese dominance in LCD and OLED production. He noted that while China had zero LCD production capacity in 2004, it now accounts for 72% globally. Similarly, China’s share of OLED production capacity has surged from 1% in 2014 to 51% today.

Despite this favorable outlook, Korean display makers face risks due to their limited manufacturing presence in the US Samsung Display has shifted much of its production to Vietnam, investing 2.4 trillion won ($1.72 billion) in its plant there, while LG Display recently secured approval for a $1 billion expansion of its Hai Phong facility.