Recently, the news from the industrial chain shows that Samsung Electronics has once again handed over the middle and low-end mobile phone supply chain developed by China ODM is fully open to Chinese manufacturers. This includes core components such as display panel, motherboard PCB.
Among them, BOE and TCL won orders for AMOLED display screens from Chinese ODM mobile phone manufacturers at the same time, which played a certain role in boosting the industrial boom for China’s panel industry. At present, AMOLED display represents the most cutting-edge mobile phone display technology, and it is also an important sector in China’s panel industry that always hopes to gain international recognition in terms of technology.
In fact, BOE has been supplying AMOLED screens for Samsung phones for a long time, and Samsung Electronics has generally accepted BOE’s technical capabilities after Apple introduced the process to BOE. In the case that BOE has enough capacity with low cost and with more convenience to cooperate with Chinese ODM manufacturers, Samsung Electronics has left the adoption of some ODM mobile phones to the Chinese supply chain to purchase and cooperate, so that the overall use cost of AMOLED display is actually much lower than that of Samsung Display within Samsung Group.
In addition to BOE, TCL has a long-term cooperative relationship with Samsung Group. Both sides jointly hold shares and invest in a number of panel factories and exclusively sell part of TCL production line. Therefore, many technologies displayed by Samsung were also transferred to TCL for authorized use to meet Samsung electronics’ own purchasing requirements.
In this process, TCL also quickly mastered the mature panel mass production process in the industry, so that it could quickly catch up with or surpass its competitors in mass production cost and speed, and form competitiveness in the global market with the advantage of lower manufacturing cost in China’s industrial chain.
The layout transformation in the mobile phone industry chain is very obvious for Samsung Group in recent years. It’s no longer limited to the group’s internal large manufacturing with brand package listing strategy, but start to take advantage of Chinese companies that have benefited from technology spillover from their own chain for that from the upstream components to the terminal machine manufacturing, and take the strategy of outsourcing and brand combination of ODM to enhance the competitiveness of low-end products after accounting cost for some product categories.
Even Samsung group began to close down some of its less competitive businesses and shift more resources to higher-end products, such as core semiconductor business and high-end display panel business. As for the products with little difference in technical commonness, mature mass production process and rapid industrial competition, Samsung Group generally shuts them down.
Chinese manufacturing benefited from joining the WTO and joined the global industrial manufacturing industry in the trend of division of labor. After absorbing and introducing a large number of mature manufacturing technology and mass production process, it quickly forms comprehensive competitiveness with low manpower, resources and operating costs. And through the rapid improvement of the layout rhythm of the industrial chain, the global manufacturing cost depression has been formed.
Although smart phones are relatively high in technological iteration and technological content, they have certain industrial barriers. However, as the shipment volume is huge and still belongs to the category of consumer products, both the technology and capacity are easy to copy, so they are quickly absorbed and lost by China’s manufacturing industry.
Moreover, with the acceleration of the penetration of industrial informatization in recent years, the capacity replication of China’s manufacturing industry is more difficult and faster, which makes it quite normal that other overseas competitors, which used to be leading in research and development or technology, are no longer able to compete with Chinese manufacturing in the production chain. Therefore, in the past decade, Korean manufacturers in the mobile phone industry chain have been continuously withdrawing from various sectors, and the market space has been occupied by Chinese manufacturers, such as die-cutting, protective cover, touch screen, chassis, middle frame, cable, connector, motherboard, mobile phone lens/lens/camera module, etc., and now AMOLED display……
Post time: Oct-25-2021