China-TCL Devours Sony TV Unit, Korea OLED Monopoly Cracks

● TCL Snatches Sony TV Business, OLED Supremacy Shaken

The story we are covering today isn’t just news about a single company changing hands.
A powerful warning signal has appeared, suggesting that the shield of the ‘display super-gap’ we believed in could be pierced much faster than we thought.
I will thoroughly dig into what the weak point of the Korean OLED industry hiding behind the shocking news of China’s TCL acquiring Sony’s TV business is, and what the real Big Picture China is aiming for is.
If you read this to the end, the changing landscape of the global display supply chain that will unfold in the future will be clearly visualized in your mind.

[Shock Analysis] China’s TCL Acquires Japan’s Sony TV… Korea’s OLED Monopoly, A ‘Real Crisis’ Has Arrived

1. News Briefing: China Sheds the ‘Low-Cost’ Label and Puts on ‘Premium’ Clothes

The movements of Chinese TV manufacturers are unusual.
News has broken that TCL, the second-largest Chinese company that used to push with ‘cost-effectiveness,’ has completely acquired Sony’s TV business division, which was the pride of Japan and a symbol of the global TV market.
This is important because Sony is a brand of a different ‘class’ that still maintains the 3rd place globally in OLED TV revenue.
It’s not just buying a company; Chinese capital has swallowed the premium image and long-standing technological heritage that Sony possesses in one bite.
Now, China should be seen as ready to directly hit the premium TV market by putting the Sony brand at the forefront, rather than being a place that makes ‘cheap TVs.’

2. Tech Trend: Even Apple Acknowledged It? Scary Speed of Technological Catch-up

What’s more frightening is that they didn’t just buy the brand, but their technological prowess has risen terrifyingly.
As evidence, we can cite the fact that Apple, known for being picky, has adopted OLED panels from the Chinese panel maker BOE.
This is clear proof that the reliability of China’s OLED panel technology has already reached global standards.
Furthermore, Chinese companies are rapidly closing the technological gap with massive government support and a huge domestic market as weapons.
It is as if they are chasing exactly the way Korea caught up with Japan in the past, or rather, at a more terrifying speed.

3. Core Issue: OLED Without FMM? The Emergence of a Game Changer

There is a technical point to note here.
It is the fact that China is developing a method to produce OLEDs without FMM (Fine Metal Mask), which is called the core process of existing OLED production.
FMM is a process with high technical difficulty and high cost, but eliminating this means securing cost reduction and mass production competitiveness at the same time.
Ultimately, while Korean companies pride themselves on being technologically ahead, China is creating a ‘monster’ equipped with price competitiveness through a new process that could completely overturn the board.

4. Crisis Diagnosis: Will the Nightmare of LCD Be Reenacted in OLED?

Display industry experts are looking at the current situation and recalling the past LCD market.
The ‘nightmare’ where the LCD market, once dominated by Korea, was eventually completely handed over due to China’s volume offensive and technological pursuit.
Looking at data from global market research firms now, Korea’s market share is still high, but China’s speed in the market share competition has accelerated.
It is a time when the sense of crisis is higher than ever, that we could lose the initiative in an instant if we rest assured simply saying “our technology is better.”

5. [In-Depth Analysis] The Real Core Point of This Situation That Others Don’t Talk About

Now, the facts coming out in the news are as above.
However, from my perspective, the really scary point is something else.
It is the fact that China has bought ‘time’.
TCL acquiring Sony means they have used money to buy and shorten the 10 or 20 years of time they would have needed to pour in to build a premium brand themselves.
Korean companies have used the consumer perception that “Chinese products are of low quality” as a shield.
But what if TCL products with the Sony logo come out? Consumers will open their wallets without resistance.
In other words, the fact that the ‘brand gap’, which is scarier than the technology gap, has disappeared in an instant, is the most painful warning this situation gives.

< Summary >

Event: China’s TCL acquires Japan’s Sony TV business, securing a bridgehead for entry into the premium market.
Technology: Apple adopts China’s BOE panels, and China is securing cost competitiveness by developing a new process without FMM.
Crisis: A ‘dejà vu’ situation is occurring where Korea’s position in the OLED market is threatened, just as the LCD market was lost to China in the past.
Key takeaway: China is purchasing not only technology but also ‘brand power’ and ‘time’ through the Sony acquisition, striking even the premium image that is Korea’s final line of defense.

*Source: 서울경제TV

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