Ministry of Industry and Information Technology Supports OLED Development Industry in Golden Phase

With the maturity of industrial technologies, the demand for OLEDs is growing rapidly and government support is increasing. The entire industry is expected to enter the golden period of development in the coming years. In the face of opportunities, many listed companies such as BOE, Shenzhen Tianma, TCL Group, and China Fortune Happiness aim at various links in the OLED industry chain and have made efforts to increase input.

Jin Lei, deputy director of the Electronic Infrastructure Division of the Electronic Information Department of the Ministry of Industry and Information Technology, said at the meeting that in the future, the Ministry of Industry and Information Technology will strongly support the development of the OLED industry from six aspects, including: in-depth implementation of the “Made in China 2025” and “Internet Plus” plans to build industrial infrastructure projects. The establishment of a display innovation center; further strengthen the industry supporting capabilities, the development of key materials including large-size substrates, liquid crystals, organic light-emitting materials, etc.; enhance the ability of enterprises to innovate and accelerate the research and development of new technologies; optimize the industrial layout and guide social reasonable investment. He said that he hopes that the majority of companies will improve the mass production process as soon as possible, increase the yield, reduce costs, and at the same time accelerate the patent distribution and participate in the formulation of relevant standards.

“The development of OLED is a trend.” Professor Deng Qingyun, a professor at Hong Kong University of Science and Technology and the OLED inventor who is regarded as the “father of OLED” in the industry, stated at the meeting that OLED, as a new generation of display technology, will inevitably grow with the yield rate in the future. Become the mainstream TV display technology. At the same time, OLEDs will usher in a golden period of development in the coming years with the gradual resolution of issues such as production capacity and cost.

Kim Jung-hyun, deputy chairman of the Korea Display Industry Association, also stated that OLEDs have already begun to be used in smart phones, televisions, medical services, and automobiles. Further expansion of applications will become a reality in the future.

With the attraction of market prospects, a number of listed companies have also increased their investment in the OLED industry.

For example, on June 29th, the China Fortune Happiness Announcement on the development of real estate and industrial parks, the two subsidiary companies of the company and Kunshan Guoxian Photoelectric Co., Ltd. respectively signed a new generation of display technology panel production line project investment framework agreement and OLED display module. The project investment framework agreement plans to invest in the construction of a sixth-generation AMOLED panel production line in the Gu'an emerging industry demonstration area in Hebei Province and the construction of an AMOLED display module project in Bazhou, Hebei Province. The company expects that the total investment will not exceed 5 billion yuan. Huaxia Happiness stated that the construction of the above two projects is optimistic about OLED's broad market prospects.

Qiangli New Material also announced on June 28 that the company has established a joint venture company with Taiwan Sheng Lei Optoelectronics, Wuxi Yunjin Investment, and Shanghai Qiwen Investment Changzhou Qiang Li Lei Photoelectric Material Co., Ltd., a joint venture company specializing in OLED organic materials and polyimide solutions. The R&D, production and sales of electronic materials such as thin films, OLED packaging materials, and photoresists marks the company's formal entry into the OLED field.

In the downstream of the industry, Hong Kong Stock Company Skyworth Digital made clear in its 2015 annual report that it is expected that the price of OLED TVs could further decline with the increase in the supply of upstream panel products and the increase in the yield. Therefore, the company believes that the promotion of OLED TVs. The time has come. In 2016, the company will vigorously develop and promote OLED products to increase market penetration. The company also expects that in the next three to five years, the market penetration rate of domestic OLED TVs will increase at a geometric multiple, reaching 30%.

In addition, JP Morgan Research also pointed out that the OLED panel is currently the most widely-connected force with the latest technological trends such as smart phones, VR, driverless and wearable devices, and is expected to recreate new industrial chains. According to data from a third-party survey agency, the scale of the OLED market in 2016 could reach 15 billion U.S. dollars; by 2022, this market will grow to 29.1 billion U.S. dollars.