Guangzhou Chengwen Photoelectric Technology co.,ltd , https://www.cwleddisplay.com
As the market for small and medium-sized AMOLEDs is on the market, Chinese manufacturers have to go through three tracks.
Since 2009, in just seven or eight years, mainland China has seen the construction and development of over ten LTPS AMOLED production lines, including both 5.5th and 6th generation facilities, with more planned. Following the rapid growth of LCD technology, China is now entering a new wave of AMOLED development. However, this latest surge is largely dominated by South Korean companies, especially Samsung, which has long held a strong position in the small and medium-sized AMOLED market due to its advanced technology and extensive marketing experience.
Although Chinese panel manufacturers have made significant technological progress, they still lack industrialization experience and market penetration, making it difficult for them to compete directly with Samsung. At present, the main challenge for Chinese companies is improving yield rates, as low yields limit production capacity and make it hard to meet demand. Another major concern is overcapacity, which could lead to market saturation if production outpaces demand.
The biggest technical challenge remains flexible display technology. Despite efforts from several Chinese firms, such as Visionox and Tianma, the development of flexible AMOLEDs is still in its early stages. While some companies have made progress in basic research and pilot testing, mass production and commercialization remain far off. The process requires not only advanced manufacturing techniques but also reliable supply chains and customer feedback loops.
Experts like Liang Xinqing from the China Optics and Optoelectronics Industry Association warn that while investing in AMOLED production lines is a positive step, the real test lies in whether these lines can achieve stable mass production. If successful, this could challenge South Korea’s dominance; however, failure to overcome technical hurdles could result in significant risks.
In response to these challenges, some companies are adopting innovative strategies. For example, Visionox focuses on mass production-oriented basic research before moving into pilot testing. Similarly, Hehui Optoelectronics has combined R&D with factory construction, achieving early success in mass production. Meanwhile, Tianma has divided its teams to focus on different stages of AMOLED development, eventually reaching shipment milestones.
Another key issue is the potential oversupply in the AMOLED market. Ouyang Zhongcan, an academician at the Chinese Academy of Sciences, predicts that China’s AMOLED production capacity will grow from 600,000 square meters in 2017 to 25.89 million square meters by 2022—a growth rate exceeding 400%. However, the smartphone market is not expected to grow by such a large margin, raising concerns about overcapacity.
To address this, industry experts suggest exploring new applications for AMOLED, such as flexible displays used in wearable devices. A flexible phone, for instance, might require three 5.5-inch AMOLED panels, effectively matching the size of an iPad mini. This could help absorb excess production capacity.
Despite the challenges, some believe that overcapacity is a natural part of industry evolution. Liu Qingquan from Tianqing Market notes that while the supply side may seem saturated, the market will eventually adjust. For now, panel makers should focus on improving technology and services rather than worrying about short-term supply-demand imbalances.
Finally, the most pressing challenge remains flexible AMOLED. Although there has been much excitement around the technology, many hurdles remain, including durability, bending resistance, and integration with touch sensors. Experts agree that the path from sample to product is still long, and current technologies are not yet mature enough for widespread adoption.
As the AMOLED industry continues to evolve, China's ability to innovate and adapt will determine its long-term success in this competitive global market.