Samjong KPMG: "Korean Display Firms Must Develop Image Quality, Form Factor, and AI Capabilities"

There is a growing recommendation that domestic display companies must develop not only superior image quality, but also capabilities related to form factors and artificial intelligence (AI).

Samjong KPMG stated this in its report published on October 7, titled "Display Utilization Strategies Driven by Form Factor Innovation."

The report evaluated that while Korean companies continue to maintain competitiveness in the premium market centered on organic light-emitting diodes (OLED), competition is intensifying due to technological advancements by overseas companies, including those in China. Accordingly, it emphasized the importance of securing technologies and business models that can create new demand, rather than focusing solely on improving image quality.

The report categorizes the drivers of innovation in the display industry into three layers: image quality, form factor, and AI interface. Image quality serves as a fundamental competitive edge, and, although its technology has advanced to the point where consumers may not readily perceive changes, it still forms the essential foundation for implementing form factors and AI interfaces.

The emerging form factor sector, which has become a new growth axis, is an area where changes in the shape and application of displays create new markets. Various types of displays—such as foldable models—are being utilized in vehicles, healthcare devices, and more.

Additionally, displays are being integrated with AI, allowing them to evolve beyond "display devices" into "intelligent interfaces." It is expected that in fields such as wearable devices, XR, mobility, and robotics, displays will become key components that support both device operation and interaction with users.

The report suggested strategies for domestic display companies to secure future competitiveness. In the area of image quality, it emphasized the need to continuously advance premium technologies, such as RGB LED.

For form factors, the report highlighted the importance of developing competitiveness in mass production. It was suggested that companies should increase the durability, flexibility, and transmittance of foldable, rollable, and stretchable displays, while also establishing stable and economical production systems. In the AI sector, the ability to supply customized displays tailored to demand in each industry will be required. The report also noted that strengthening the competitiveness of backend industries—such as materials, components, and equipment—remains a major task.

Inhye Kang, Deputy CEO and Tech Industry Leader at Samjong KPMG, stated, "The global display industry has entered an era where it is difficult to differentiate solely based on image quality. Domestic display firms need to systematically secure capabilities for mass production of various form factors and for building AI-based, industry-specific solutions, while also maintaining a competitive edge in premium technologies such as OLED."

This content was produced with the assistance of AI translation services.