South Korea's display industry faces new uncertainties following Donald Trump's return to the US presidency. While Samsung Display and LG Display maintain their OLED technology leadership, industry watchers are closely monitoring the potential impacts of heightened US-China tensions.
Market dynamics shift
The medium- to long-term outlook may favor South Korean display makers. Though Samsung Display and LG Display lack a US manufacturing presence and face no direct American competition, their Chinese rivals—BOE Technology, TCL CSOT, Visionox, and Tianma Microelectronics—have been aggressively expanding their OLED capabilities.
Any strengthened US restrictions on Chinese firms could particularly benefit the South Korean display makers, especially regarding BOE's aspirations to supply Apple. This scenario could provide Samsung Display and LG Display welcome relief from Chinese competitive pressure, even as they continue to compete with each other.
America First challenges
The reinvigorated America First policy poses several concerns for South Korean manufacturers. Given that major US tech giants like Apple and Google heavily depend on South Korean displays, the Trump administration could potentially introduce new legislation, impose additional tariffs, or mandate local US production facilities.
While no immediate disruptions are expected in South Korea's materials, components, and equipment sectors, both Samsung Display and LG Display face mounting uncertainty due to their Chinese client exposure. Industry experts anticipate more assertive measures during Trump's second term, warranting increased vigilance from South Korean display makers.
LCD market vulnerabilities
The Chinese grip on the LCD market creates additional complexities. With Samsung Display's complete exit from LCD production and LG Display's sale of its Guangzhou LCD facility to TCL CSOT, South Korean TV manufacturers now almost exclusively rely on Chinese LCD suppliers.
This dependency creates strategic challenges for Samsung and LG Electronics. The Chinese LCD monopoly not only diminishes their negotiating leverage but also leaves them vulnerable to potential US sanctions on Chinese-made materials, which could necessitate significant supply chain restructuring.
