Staff Reporter: Ouyang Jing
Not long ago, LED Display World reported that Japan Display Inc. (JDI) implemented a “disguised” layoff affecting 1,566 employees. The job cuts among Japanese and Korean display makers have not stopped there. Recently, LG Electronics (LGE) was reported to be rolling out a large-scale voluntary retirement program targeting employees aged 50 and above, as well as low performers, potentially impacting more than 7,000 people. Unlike past programs that were confined to the TV business, this round spans all major LGE divisions, including Home Appliance (HS), TV (MS), Vehicle component Solutions (VS), and B2B Solutions (ES).
Back in early July, Samsung Electronics adjusted headcount within its Visual Display (VD) Business, transferring some TV chip engineers to other units and restructuring senior roles. Surprisingly, after the reorg, the Samsung display organization formed a mid-level “Work Sight” team that has recently been in China to learn about innovation. Behind these moves lies the strategic dilemma that Japanese and Korean display makers face amid intensifying global competition.
Layoffs and restructurings are not merely cost-cutting tactics; they are strategic responses to market shifts. As Chinese display companies rise, the traditional advantages of Japanese and Korean brands are eroding. Data show Chinese brands’ share of the global TV market has climbed from under 20% to nearly 40%, while Japanese and Korean brands have seen notable declines. Driving this change are Chinese companies’ sharp feel for market demand, rapid response capabilities, and advantages in supply-chain coordination and cost control.
China’s complete and highly coordinated supply chain is difficult for Japanese and Korean firms to replicate in the short term. From raw materials to end applications, China possesses an integrated industrial chain and a mature mechanism for collaborative innovation among display makers. This ecosystem allows Chinese companies to commercialize new technologies quickly. By contrast, the relatively rigid organizational structures and R&D models at many Japanese and Korean firms slow their response to market changes.
For Japanese and Korean companies, visiting Chinese factories to study innovation is an important attempt at a breakthrough. It shows they recognize that internal adjustments alone are insufficient; they must also seek external sources of innovation. By learning from Chinese firms’ innovation mechanisms, production efficiency, and market strategies, Japanese and Korean players may improve in product design, manufacturing processes, and market responsiveness.
Will layoffs, reorganizations, and learning from China truly save the Japanese and Korean display industry? Workforce reductions can improve finances in the short term, but without a fundamental boost in competitiveness, cost-cutting alone cannot meet the market challenge. Japanese and Korean firms still hold strengths in high-end display technologies such as Micro LED and OLED. If they can align these technical advantages more closely with market needs, they may yet carve out a share of the next-generation display market.
But breakthroughs at the high end are difficult. They require sustained R&D investment and a tight connection with real-world demand. Japanese and Korean companies need to move beyond traditional R&D models toward greater market orientation and faster iteration. The success of Chinese display companies lies not only in technology itself but also in the ability to convert technology into market advantage rapidly.
Today, the global display industry is entering a new stage marked by technological convergence and diversified applications. The fusion of Mini/Micro LED, AI, and XR is opening fresh growth avenues. If Japanese and Korean firms can seize this opportunity through innovation and collaboration, they still have a chance to secure a place in the emerging competitive landscape.
In the face of China’s rise, Japanese and Korean display makers are not without opportunities. In the long run, competition in displays ultimately comes down to innovation capacity and market responsiveness. The key is whether companies can truly understand and adapt to the new industrial order—embedding innovation into their corporate DNA. That will require the courage to break with legacy thinking and embrace change to win the next round of competition.
Conclusion
The predicament of the Japanese and Korean display industry is no accident; it reflects the inevitable shift in global display leadership. Historically, leadership moved from the United States to Japan, then from Japan to Korea, and now it is shifting on a large scale to China. The recent layoffs and learning trips to China are landmark events in this transfer of power within the global display sector.
Layoffs and reorganizations are survival tactics; traveling to China to learn is a strategy for transformation. But the ultimate decisive move is whether companies can execute a deep, future-oriented strategic shift. China’s display-industry rise is not only the result of its own rapid development—it also signals the global industry’s march to a higher level. If Japanese and Korean companies can genuinely absorb the innovative spirit and market sensitivity of Chinese display makers while leveraging their own strengths in high-end technologies, they may yet find a viable position in the new landscape and achieve sustainable growth.
