Display panel makers expand with edge in OLED

Chinese mainland display panel manufacturers captured more than half of global panel revenue for the first time during the first half of 2025, as major domestic players are doubling down on the cutting-edge semiconductor display technologies represented by organic light-emitting diodes (OLED) and mini LED.

According to a report from CINNO Research, a flat panel display consultancy, total revenue of major global panel makers reached about $56.2 billion in the first six months, roughly flat from a year earlier. The revenue from Chinese mainland companies stood at $29.3 billion, up 7 percent year-on-year, accounting for 52.1 percent of the global total.

By contrast, South Korean display panel makers saw their revenue decline by 9.5 percent, with their market share dropping to 30 percent, while revenue from Japanese companies fell by 16.7 percent, occupying 3.5 percent of the global total.

Panel makers from Taiwan province reported that their revenue in the first half rose 4.4 percent year-on-year, with their global market share reaching 13.2 percent, up 0.6 percentage point from the previous year.

In terms of operating profit, South Korea's Samsung Display remained in the top spot, though its advantage has narrowed. TCL China Star Optoelectronics Technology Co Ltd and BOE Technology Group Co Ltd, two leading Chinese mainland display panel makers, ranked second and third globally in the first half, respectively.

TCL CSOT posted a net profit of 4.32 billion yuan ($606.32 million) in the first half, up 74 percent year-on-year, while BOE reported 3.25 billion yuan in net profit, an increase of 42.15 percent year-on-year.

BOE's revenue reached 101.28 billion yuan, up 8.45 percent year-on-year, followed by TCL CSOT with 50.43 billion yuan, an increase of 14.4 percent year-on-year, narrowing the gap with Samsung Display and LG Display.

Looking ahead, CINNO Research expects the Chinese mainland display market will witness robust growth in the second half of 2025, driven by the demand for larger screen sizes and rising shipments of high value-added products including mini LED, OLED and AI-powered panels.

TCL CSOT recently announced that it has completed the acquisition of LG Display's two China-based subsidiaries, which operate an 8.5-generation LCD production line in Guangzhou, Guangdong province, and a module assembly factory, for around 11.1 billion yuan.

The deal, first announced in September 2024, marks LG Display's formal exit from the LCD manufacturing business in the Chinese mainland. Through the acquisition, TCL CSOT will further strengthen its leadership in the global medium- to large-sized LCD panel market and expand its production capacity.

The company said that demand for TV panels is expected to recover in the third quarter of the year and its acquisition of LG Display's Guangzhou LCD line will be an important source of profits in the future.

It is banking on OLED panels, which are increasingly being used in medium- and high-end smartphones, tablets, laptops and vehicle-mounted devices.

Data from market consultancy Sigmaintell Consulting show that the penetration rate of OLED panels in smartphones across the globe will reach nearly 60 percent in 2025, as major handset manufacturers have adopted OLED panels in their devices.

Chen Yanshun, chairman of BOE, said there is surging demand for OLED panels and the company plans to expand the application of OLED in tablets, laptops and wearable devices segments.

BOE now owns three flexible active-matrix organic light-emitting diode (AMOLED) production lines in Chengdu and Mianyang in Sichuan province, as well as in Chongqing.

It has announced plans to set up a new AMOLED production line in Chengdu. The products will be mainly high-end touch screens such as those used on mid-sized laptops and tablets. The project is expected to start mass production by the end of 2026.

Li Yaqin, general manager of Sigmaintell Consulting, estimates that the sales revenue of the global display industry will reach $114.3 billion in 2025, while revenue from the OLED sector will amount to $43.3 billion, accounting for a 38 percent share in the overall display market worldwide.

The penetration rate of OLED panels used in tablets is expected to increase from 5.7 percent in 2024 to 17.9 percent in 2028, according to the consultancy.

Demand for flexible OLED panels used in foldable smartphones will continue to rise on the back of 5G commercial applications, Li said, adding that panel makers should further improve their yield rate capacities and reduce production costs.