Samsung Display prepares to defend technology from China

Image of Samsung Display's diamond pixel architecture [SAMSUNG DISPLAY]

Samsung Display, the world's largest smartphone organic light emitting diode (OLED) panel supplier, is gearing up to further defend its intellectual property against infringement by Chinese competitors.

In an earnings call last month, the company said that it is looking into different ways of protecting its technologies.

"We pioneered the OLED market after first mass-producing the product and have gained a myriad of patents and know-how," said Choi Kwon-young, executive vice president at the display maker, which is 84.78 percent owned by Samsung Electronics.

"We are taking in-depth measures from multiple angles for our intellectual property, the fruit of the efforts, to be fairly recognized and compensated," he said.

Samsung Display would not comment further on the timing of the response or the exact methods that will be used to protect intellectual property.

One of the company's key technological assets is the diamond pixel. It arranges red, blue and green (RGB) screen dots in the shape of diamonds to enhance display resolution.

The panel maker presented the architecture to a group of reporters during this year's CES in Las Vegas.

Samsung Display is the largest provider of smartphone OLED panels, with 73.5 percent market share in the third quarter, according to market tracker Omdia.

BOE took the second spot, at 9.8 percent, followed by LG Display, 8.5 percent. In the large-sized OLED panel for televisions, LG Display holds a dominant market share.

China's display makers have scouted top engineers from Korean tech companies, including LG Electronics, luring them with big paychecks to potentially gain access to the exclusive technologies of the companies, according to multiple sources in the display industry.

The purchase of smaller local companies is considered another way of advancing the technology.

In 2002, BOE bought Hydis, a local display maker that was a part of SK hynix, in a deal that may have helped it boost the competitiveness of its liquid crystal display (LCD) products.

"Korea's display industry has a painful memory about BOE's acquisition of Hydis," said another source. "When Hydis was acquired by BOE in 2002, it was a tipping point that triggered China taking over the LCD market and beating out Korea."

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]