SEOUL, KOREA - China's display makers such as Shenzhen China Star Optoelectronics Technology and BOE Display are growing quickly as behemoths on the back of the government's support and a strong TV demand in their home market.

 

The Chinese display market share held by Chinese suppliers remained at a 10-percent level until the first quarter last year, but it rose to more than 30 percent in the second quarter this year.

 

Up until last year, China's TV panel market had been dominated by Korean and Taiwanese makers. According to market research firm Displaybank, Korean display manufacturers such as Samsung Display and LG Display accounted for 31.9 percent of the market while Taiwanese ones including Chimei Innolux and AU Optronics represented 54.8 percent during the first quarter in 2012. At the time, Chinese suppliers took only a 11.0-percent share.

 

But things changed fundamentally this year. In April this year, the share of Chinese makers shot up to 32.3 percent, followed by 35.0 percent in May. Naturally the share of Korean companies declined to 20.0 percent in April and May.

 

In response, Samsung and LG have resumed their efforts to expand production capacity in Suzhou and Guangzhou, respectively. For example, Samsung Display will begin operations of its eighth-generation line in Suzhou in the fourth quarter. LG Display has also moved up its schedule to complete the construction of the eighth-generation line in Guangzhou by the second quarter next year.