Display Association, Promotes Cross-Supply of Display Equipment Parts with 90% Overseas Dependence

High Dependence on Japanese Equipment Parts 'MFC' Identified
Customized Strategies Including Expansion of Exports to China and Japanese Technical Cooperation

The Korea Display Industry Association announced on the 22nd that industry, academia, and research sectors gathered to discuss promoting cross-supply to enhance self-reliance in equipment parts, which currently depend on overseas sources by 90%.

The association reported that the 'Display Development Strategy Council' meeting was held that morning at the Grand Intercontinental Seoul Parnas in Gangnam-gu, Seoul. Fifteen participants attended, including Kang Jeong-tae, Vice President of Samsung Display; Shin Seong-pil, Executive Director of LG Display; Kim Cheol-young, CEO of Mirainanotech; Jeong Gi-ro, Chairman of AP System; Kim Yong-seok, Professor at Hongik University; and Han Cheol-jong, Center Director of Korea Electronics Technology Institute.

The council focused on discussing ways to activate cross-supply of equipment parts, which rely on overseas sources for about 90%. The association stated that Korea's share of the five core OLED (Organic Light Emitting Diode) equipment parts is 9%, which is lower than the United States at 37%, Japan at 29%, and the European Union (EU) at 19%.

After a demand survey in August last year, the council identified equipment parts suitable for cross-supply by examining the technological level of Korean companies, contract relationships, and interviews with demand and supply companies. One such part is the MFC used in gas-utilizing processes. MFC is a device that precisely controls gas flow. The MFC market share is 80% Japan, 15% USA, and 5% Korea. The technological capability of domestic companies has grown to a level comparable to Japanese products.

The industry responded that replacing with domestically produced MFCs would secure price competitiveness. Procuring equipment domestically can prevent issues such as supply delays and price increases that occurred last year.

The Display Development Strategy Council discusses ways to enhance domestic self-reliance in materials, parts, and equipment on the morning of the 22nd and takes a commemorative photo. [Photo by Korea Display Industry Association]

The council shared trends of Chinese material, parts, and equipment companies and discussed countermeasures. Gu Young-mi, Executive Director of MK China Consulting and a China expert, said, "As panel companies gain influence and the Chinese government implements policies such as advanced industry supply chain self-reliance and fostering strong small and medium enterprises, material, parts, and equipment companies are rapidly growing," adding, "Korean companies must actively prepare through technological differentiation and diversification of supply sources."

Kim Cheol-young, Chairman of the Materials Subcommittee, stated, "China is not only providing subsidies through policies to increase the localization rate of materials but also prioritizing the adoption of regionally produced products." Jeong Gi-ro, Chairman of the Equipment Subcommittee and CEO of AP System, said, "Chinese companies are producing not only module equipment but also laser equipment that requires technological expertise," and emphasized, "Full government support is necessary to strengthen the competitiveness of Korean material, parts, and equipment companies."

Lee Dong-wook, Vice Chairman of the association, said, "The association will serve as a hub to build a robust industrial ecosystem and enhance competitiveness," adding, "With the emergence of new displays such as Micro OLED and inorganic light emission, we will expand cooperation among related industries including semiconductors."

He added, "The association has held exchange meetings between associations and Korea-Japan trade consultations to expand Korea-Japan cooperation, and expects that discussions on technology and trade cooperation between the two countries will gain momentum following the Korea-Japan summit," and stated, "We will pursue tailored strategies for export expansion to China and technological cooperation with Japan, respectively."