Core Viewpoint - The ongoing OLED trade secret dispute between Samsung and BOE has escalated, with the ITC preliminarily ruling in favor of Samsung, indicating that BOE infringed on Samsung's trade secrets and violated unfair trade practices under Section 337 of the Tariff Act [1][2] Group 1: Legal Developments - Samsung Display filed a lawsuit against BOE for OLED technology infringement, leading to a preliminary ruling by the ITC that BOE and its affiliates violated trade secrets [1] - The ITC plans to issue a "limited exclusion order" to prevent the infringing products from entering the U.S. market and a "cease and desist order" to halt the use and production of these products [1] - BOE has expressed intentions to appeal the ITC's preliminary ruling and has previously been found not in violation of Section 337 in a separate patent investigation [1] Group 2: Competitive Landscape - The relationship between Samsung and BOE has deteriorated due to increased collaboration between BOE and Apple, leading to Samsung's removal of BOE from its supplier list [2][3] - Both companies have engaged in a series of lawsuits against each other, with BOE filing a patent infringement lawsuit against Samsung in China, and Samsung counter-suing in the U.S. [3][4] Group 3: Market Position and Growth - BOE has significantly increased its market share in the semiconductor display sector, achieving a 25.2% share in the LCD market and a 15.7% share in the OLED market, making it the second-largest globally [6][8] - In the first half of 2023, BOE led the smartphone panel market with a 28.0% share, while Samsung held a 15% share in OLED smartphone panels [8] - By 2024, BOE is projected to maintain its leadership in the global smartphone OLED display market, with an expected shipment of approximately 5.7 billion units, surpassing Samsung's 3.7 billion units [8][9] Group 4: Future Outlook - The competition between Samsung and BOE is expected to intensify as BOE secures a primary supply position for Apple's iPhone 16e series, supplying over 15 million OLED displays [10] - The ongoing legal battles and market competition reflect a broader trend of technological advancement in the semiconductor display industry, with Chinese companies pushing for innovation and market share [10]

Core Viewpoint - LG Display has seen a significant increase in the average selling price of its panel products, surpassing $1000 for the first time in over a year, primarily due to the suspension of lower-priced LCD panel sales [1][2]. Group 1: Pricing and Market Share - In Q2, LG Display's average panel price exceeded $1000, marking a notable recovery in pricing [1]. - The company's market share in the global large-sized panel segment was 12.9% in the first half of the year, down from 15.7% in the same period of 2024 [1]. Group 2: Strategic Focus and R&D Investment - Chinese manufacturers are increasing investments to expand their share in the LCD panel market, prompting Korean companies to focus on OLED panel development [2]. - LG Display plans to allocate 10.4% of its sales revenue to OLED technology research and development in the first half of 2025, up from 8.4% in the previous year [2]. - The company is gradually exiting the liquid crystal television business and shifting towards an OLED-centric business structure, with OLED products accounting for 56% of total revenue in Q2, a 4% increase year-on-year [2]. Group 3: Future Outlook - The CFO of LG Display has indicated that the company's performance is expected to rebound significantly in the second half of the year as the scale of the OLED business expands [2].

Core Viewpoint - The article discusses the preliminary ruling by the U.S. International Trade Commission (ITC) against BOE Technology Group, stating that the company infringed on Samsung Display's trade secrets related to OLED products, which could lead to significant losses for Samsung [2][4]. Group 1: ITC Ruling and Implications - The ITC's preliminary ruling is not final and does not have enforceable power; the final decision is expected in November [4]. - If the final ruling confirms the infringement, a limited exclusion order could be issued, prohibiting the import of standalone OLED panel devices [4]. - Current reports suggest that the preliminary ruling will not have a substantial impact on BOE, and the media may be exaggerating the situation to undermine Chinese panel manufacturers [4]. Group 2: Market Impact and Competitor Analysis - In Q2 of this year, BOE held a 22.7% market share in the small OLED panel market for iPhones [4]. - Analysts predict that even if BOE is banned from supplying Apple, the company may redirect its products to other regions initially [4]. - However, in the long term, the uncertainty surrounding BOE's business could lead to a significant decrease in its market share, benefiting competitors like Samsung Display and LG Display [4].

Core Viewpoint - Visionox plans to order vapor deposition equipment from Canon Tokki for its 6th generation OLED V2 line expansion, aiming to double its monthly production capacity from 15K to 30K units [1][2]. Group 1: Production Capacity and Equipment - The current monthly production capacity of the existing V2 line is 15K units, and Visionox intends to expand this to 30K units [2]. - The V2 line has been using Canon Tokki's vapor deposition equipment, and it is likely that the same equipment will be used for the expansion to avoid process discrepancies [2]. - Visionox's production lines include the 5.5 generation V1 line (15K/month), the 6th generation V2 line (15K/month), and the 3rd generation V3 line (30K/month) [2]. Group 2: Market Dynamics and Technology - The operating rate of China's 6th generation OLED production lines is currently high, recovering from previous low rates due to over-investment [3]. - The decline in OLED product prices has led to increased utilization rates, as smartphone manufacturers have shifted to low-cost OLEDs, making it difficult to revert to LCDs due to consumer preferences [3]. - Visionox's V5 line is expected to use ViP vapor deposition equipment from Applied Materials' subsidiary AKT, as the 6th generation ViP pilot line has already utilized AKT's equipment [3]. Group 3: Technology Implementation - In the V5 line, one-quarter of the 8K monthly production will prioritize ViP technology, while the remaining three-quarters may use FMM technology, although specific investment execution details and timelines remain unclear [5].

Core Viewpoint - The display glass substrate is a critical component of display panels, accounting for approximately 15% of the cost of TFT-LCD panels, and is facing a shift towards higher pricing due to rising energy costs and market dynamics [2][5][23]. Group 1: Display Glass Substrate Overview - The glass substrate is a core raw material for display panels, with about 80% of display glass substrates used for LCD panels [1][23]. - A TFT-LCD panel requires two glass substrates, while an OLED panel primarily uses one as a carrier glass [1][23]. Group 2: Market Development - Major glass substrate manufacturers like Corning, AGC, and NEG are shifting focus from market share expansion to improving profitability due to rising energy costs, which account for over 50% of production costs [2][38]. - The global market for FPD glass substrates is expected to reach approximately 50 billion yuan (about 7.05 billion USD) by 2025, with a projected revenue growth of 15% from 2024 [2][39]. Group 3: Demand and Supply Dynamics - In 2024, the demand for FPD glass substrates is projected to be 645 million square meters, with a year-on-year growth of 4.34% and a supply surplus rate of 7% [3][39]. - By 2025, demand is expected to increase to 679 million square meters, with a further reduction in the supply surplus rate to 5% [3][39]. Group 4: Competitive Landscape - The market concentration is high, with the top three companies (Corning, AGC, and NEG) holding about 80% of the market share [4][46]. - Domestic manufacturers have accelerated the pace of localization, with companies like Rainbow Technology making significant breakthroughs in high-generation glass substrates [4][48]. Group 5: Investment Recommendations - With China holding 70% of global LCD production capacity, the demand for glass substrates is increasingly concentrated in China, prompting many related companies to establish factories there [5][6]. - Rainbow Technology has shown promising results in mass production of high-generation glass substrates, and as initial investment costs decrease over time, its profit margins are expected to improve [5][6].

Core Viewpoint - BOE Technology Group (京东方) has seen a significant stock price increase of 7.72%, reaching HKD 6.56, driven by news of its involvement in supplying OLED panels for the iPhone 17 series, specifically for the domestic version [1] Group 1: Company Involvement - BOE is one of three suppliers for the iPhone 17 series OLED panels, alongside Samsung and LG, with a focus on the iPhone 17 Pro series for the domestic market [1] - The company has recently established an OLED product line for the iPhone, although its supply volume is the lowest among the three suppliers [1] Group 2: Market Share and Production Capacity - Samsung is the primary supplier for the iPhone 17 series, expected to provide 70 million OLED panels, while LG is set to supply 43 million panels [1] - In the second quarter, market share for OLED panels supplied to Apple was as follows: Samsung 56.0%, LG 21.3%, and BOE 22.7% [1] - BOE previously supplied approximately 20% of the OLED displays for the iPhone 16 series, with an annual production capacity of 100 million panels [1]

Core Viewpoint - Japan Display Inc. (JDI) is selling part of its liquid crystal panel manufacturing equipment from the Mobara factory to China's HKC, marking a significant shift in its operations as it ceases production for Apple, which previously accounted for 60% of its sales [1][2]. Group 1: Equipment Sale and Production Changes - JDI will stop production at the Mobara factory, which was originally scheduled to operate until March 2026, but is likely to cease operations by 2025 to reduce fixed costs [1]. - The equipment being sold includes manufacturing tools for liquid crystal and OLED panels, with the sale amount expected to be in the billions of yen [1]. - JDI's production for Apple peaked at approximately 380 billion yen in the fiscal year 2019, but is projected to drop to zero in the future [1][2]. Group 2: Company Background and Financials - JDI was established in 2012 under the leadership of the Japan Innovation Network (INCJ), which invested a total of 462 billion yen and plans to sell all its shares by March 2025 [2]. - The company has faced long-term operational difficulties, leading to a necessary scale reduction to maintain financial balance [1]. Group 3: Market Position and Collaborations - HKC ranks fifth globally in the market share for large-size liquid crystal panels used in televisions and personal computers [1]. - JDI and HKC had previously reached a collaboration agreement in 2023 regarding OLED business, but the mass production plans have since been shelved [1].

Core Viewpoint - The average utilization rate of OLED panel production lines in mainland China is expected to increase to 80% in Q3'25, representing a 2 percentage point increase from the previous quarter [1]. Group 1: Production Capacity and Utilization Rates - The report provides the latest production capacity list for OLED panel production lines in China [2]. - The average utilization rate for Q2'25 for OLED production lines in mainland China is detailed [4]. - Specific utilization rates for rigid and flexible OLED panel production lines in Q2'25 are included [4]. - The report includes statistics on the production area share of various OLED manufacturers in Q2'25 [4]. Group 2: Manufacturer-Specific Utilization Rates - The utilization rate statistics for BOE's OLED panel production lines in Q2'25 are presented [4]. - The utilization rate statistics for Tianma's OLED panel production lines in Q2'25 are provided [4]. - The utilization rate statistics for Visionox's OLED panel production lines in Q2'25 are included [4]. - The utilization rate statistics for CSOT's OLED panel production lines in Q2'25 are detailed [4]. - The utilization rate statistics for EDO and Huayi's OLED panel production lines in Q2'25 are mentioned [4].

Core Insights - Apple has confirmed that it will allocate a portion of the OLED panel orders for the iPhone 17 Pro to China's BOE, which will supply screens for iPhone models sold in China [1] - The initial supply volume is limited, so the short-term impact on LG Display and Samsung Display will not be significant, but BOE is rapidly closing the technology gap [1] - The allocation of orders to BOE is seen as a strategy by Apple to reduce costs following the 25% tariff imposed on non-American iPhone imports during the Trump administration [1] Group 1 - BOE has reached Apple's minimum standards for OLED panels, and if it achieves technology parity with Samsung Display or LG Display, it may secure more orders [2] - BOE operates a production line capable of producing 100 million iPhone OLED panels annually, with a monthly capacity of approximately 8 million iPhone modules [2] - In the first half of 2025, BOE's iPhone panel shipments are expected to reach 21 million units, a 13% increase from 18.6 million units in the same period last year [2] Group 2 - Samsung Display is expected to supply 70 million OLED panels, while LG Display is projected to supply 43 million panels for the iPhone [3] - In Q2, LG Display held a 21.3% share of iPhone panel shipments, falling behind BOE's 22.7%, while Samsung Display maintained a leading position with 56% [3] - LG Display's performance is anticipated to rebound with the launch of the iPhone 17 series, with its market share expected to rise to 30.3% in Q3 [6]

Core Viewpoint - LG Display is transitioning from LCD to OLED technology, focusing on enhancing its competitive edge and financial structure while navigating a challenging market environment [3][5][13]. Financial Performance - In Q2 2025, LG Display reported revenue of 5.587 trillion KRW (approximately 29.22 billion RMB), a decrease of 8% quarter-over-quarter and 17% year-over-year [1]. - The company experienced an operating loss of 116 billion KRW (approximately 607 million RMB), compared to an operating profit of 33.5 billion KRW in the previous quarter and a loss of 937 billion KRW in the same quarter last year [1]. - Net profit for the quarter was 891 billion KRW (approximately 4.66 billion RMB), recovering from a net loss of 237 billion KRW in the previous quarter and a loss of 471 billion KRW in the same quarter last year [1]. - For the first half of 2025, revenue was 11.652 trillion KRW (approximately 60.94 billion RMB), a year-over-year decline of 3%, but the operating loss was reduced by 480.5 billion KRW compared to the previous year [1]. Market Dynamics - The second quarter is traditionally a slow season, leading to a decrease in mobile product shipments [3]. - LG Display's exit from the LCD TV business and the weakening of the Korean won against the US dollar impacted performance [3]. - The company’s net profit was positively influenced by foreign exchange gains and the sale of its Guangzhou LCD factory stake [3]. Product Segmentation - In Q2 2025, TV panels accounted for 20% of total revenue, IT devices (including monitors, laptops, and tablets) 42%, mobile and other devices 28%, and automotive panels 10% [3]. - OLED products represented 56% of LG Display's total revenue, showing a year-over-year growth of 4% [3]. Strategic Initiatives - LG Display is investing 1.26 trillion KRW (approximately 6.66 billion RMB) in building an OLED panel factory in Paju, South Korea, marking its first large-scale investment in the country since selling the Guangzhou LCD factory [6]. - The company is focusing on differentiated innovation in product offerings, such as a stretchable automotive display and the fourth-generation OLED panels for monitors [8]. Competitive Landscape - Following Samsung Display's exit from the LCD market, LG Display is accelerating its transition to OLED to maintain its leading position [5]. - Both LG Display and Samsung Display are targeting the high-value automotive OLED display market, with significant orders from major automotive manufacturers [12][13]. Future Outlook - The CFO of LG Display anticipates a significant rebound in performance in the second half of the year as OLED business scales up [4]. - The ongoing investments and strategic shifts are expected to drive OLED technology from a high-end option to mainstream applications, particularly in foldable devices and high-end gaming monitors [13].