From foldables to AR headsets, OLED poised for solid growth, says Merck's Johannes Canisius

Tech

From foldables to AR headsets, OLED poised for solid growth, says Merck's Johannes Canisius

Published: 16 Aug. 2024, 18:14

PARK EUN-JEE
park.eunjee@joongang.co.kr

Johannes Canisius, head of OLED business at Merck [MERCK]

[INTERVIEW]

LG Display’s decision to sell its last remaining liquid crystal display(LCD) factory in China earlier this year symbolizes the Korean display industry’s seismic shift from LCD to more advanced organic light-emitting diode (OLED) panels.

As Korea’s two largest display makers, LG and Samsung Display, now exclusively deal in OLED displays without LCD businesses, they are well-positioned to benefit from the growing demand surrounding the high-end panel type, according to Johannes Canisius, head of OLED business at Merck. The German science and technology giant holds a sizable market share in the OLED materials business both in Korea and globally, with Samsung and LG being their major clients.

In May, Apple released its first iPad with OLEDs supplied by Samsung Display, and there have been constant rumors that the Cupertino, California-based tech giant will make an OLED-based foldable smartphone.

But price-cutting Chinese manufacturers like BOE are also upping investment in OLEDs, presenting a threat to local companies.

Still, Canisius says that Korean companies enjoy a firm lead in the OLED market due to their stringent quality standards.

The Korea JoongAng Daily contacted the OLED business head to discuss the prospects of OLEDs, Merck’s plans for investment and the company's strategy in Korea.

Below are the edited excerpts from the e-mail interview.

Q. How do you forecast the future of the OLED market as Chinese players play an aggressive game of catch-up, especially in the small and mid-sized panel segment?
A. The OLED market is poised for continued growth, particularly as demand for high-quality displays increases across various applications. While it’s true that Chinese manufacturers are making significant strides, particularly in the small and mid-sized panel segment, Korean display makers have maintained a strong leadership position due to their advanced technology, quality, and robust supply chain.

Korean manufacturers have a deep understanding of OLED technology and a well-established infrastructure that gives them a competitive edge. However, the competition will intensify as Chinese players improve their technology and production capabilities. We anticipate that Korean makers will continue to dominate in the premium segment and large-sized panels, where quality and innovation are critical. Nonetheless, to sustain this dominance, continuous investment in R&D and close collaboration with partners like Merck will be essential to staying ahead of the curve.

Based on flexible displays, preparations for the next generation of displays are in full swing. What kind of business is Merck doing in this area and what are your plans for the future?
Merck is at the forefront of driving innovation in the next generation of displays, particularly in the area of foldable and rollable screens. We recognize that alongside high resolution and energy efficiency, design freedom, immersiveness and interactivity are becoming increasingly important trends in the display industry. As a result, we have developed the liviFlex platform, a pioneering solution designed specifically to meet the unique challenges of foldable, rollable and stretchable displays.

Foldable and rollable screens require materials that are not only thin and lightweight but also exceptionally flexible and durable. These materials must withstand thousands of folding and rolling actions without degrading in performance or quality. Our liviFlex portfolio offers a set of innovative solutions that enable these free-form factors while maintaining the robustness and optical clarity necessary for high-performance displays.

Merck is investing heavily in Korea. For example, you invested in an OLED sublimation purification facility last year. What areas or plans does Merck have for additional investment in Korea in the display sector?
Merck recognizes the critical role that Korea plays in the global display industry, and we are committed to deepening our investments in this key market. Our ongoing investments, including the OLED sublimation purification facility, are part of a broader strategy to enhance our local capabilities and better serve the needs of our Korean partners.

Our future investment plans in Korea focus on several strategic areas. We are continuing to strengthen our position as a leading supplier of Liquid Crystal (LC) materials, particularly for high-end applications such as premium TVs, IT, and automotive displays. By focusing on these segments, we aim to support Korean manufacturers in maintaining their competitive edge in the global market.

We are also expanding our OLED business and related capabilities in Korea to provide comprehensive solutions from research to production. This includes close collaboration with our customers to develop next-generation OLED materials that will enable innovative display technologies. These investments get us closer to our customers, ensuring that we can respond quickly to their evolving needs.

We are actively exploring and investing in new materials for future display technologies, including AR/VR, microLEDs, and beyond displays. These emerging technologies represent the next frontier in the display industry, and we are committed to pioneering the material solutions that will drive their adoption and success.

In Korea, there are major customers in the display industry. What are the recent business-related requirements of Korean customers for Merck? What are Korean display makers' priorities in the display segment and how do they differ from other global clients' priorities?
Korean display manufacturers are among the most innovative and demanding in the world, and their priorities are shaping the future of the display industry. Recent business-related requirements from our Korean customers reflect a strong focus on several key areas.

Korean customers set the highest standards in the established applications of OLED, which are mobile and TV. To ensure competitive advantages, Merck continuously develops optimized material solutions addressing the newest performance parameters in close cooperation with customers and market-leading partners

Korean customers are heavily focused on the next wave of OLED applications, particularly in the IT, automotive and AR/VR sectors. They are seeking new materials that offer improved performance, such as higher brightness, better energy efficiency and longer lifespan. Merck is actively collaborating with these customers to develop and deliver the advanced OLED materials needed to meet these requirements.

In May, it was announced that Samsung Display will begin investing in 8.6 generation IT OLEDs for laptops and tablets. However, LG Display has yet to make an investment decision, so what is Merck doing to prepare for this?
Merck remains committed to supporting our partners, regardless of their strategic decisions. We are closely monitoring the developments in the OLED market, particularly with regard to IT applications where we see significant potential for growth. Our strategy involves staying flexible and adaptive to the needs of our partners, whether they decide to move forward with new investments or focus on optimizing their existing technologies.

Although the AR/VR market is emerging as a future growth driver for the display industry, it faces a number of hurdles to really take off. One issue is display-induced dizziness and high costs. Given this, what is Merck's forecast on the AR/VR market in the future, and what's Merck's strategy in it?
The AR/VR market is indeed at an inflection point, with significant potential for growth as the technology matures and overcomes current limitations. While there are challenges, such as making such devices more lightweight and comfortable, reducing display-induced dizziness and lowering costs for more widespread adoption, Merck sees AR/VR as a crucial area of transformation for the display industry and a key element in the broader push towards more immersive,interactive and AI-enabled experiences.

We anticipate that as the technology improves, particularly in display performance, AR/VR will become more widely adopted. To address the current challenges, Merck is focusing on developing advanced materials that can meet the stringent demands of AR/VR displays. These include high-resolution, bright, and completely transparent displays that are crucial for creating natural-feeling virtual images.

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