Merck KGaA, a global leader in specialty chemicals, has made a strategic decision to halt its research and development efforts in LCD materials, redirecting its focus toward Micro and Mini LED technologies.
Merck KGaA‘s Shift to Micro LED and Mini LED Technologies
An insider from the company recently confirmed that Merck KGaA has ceased the development of new materials for LCD panels. Instead, it is now concentrating its research and funding on self-illuminating display technologies such as Micro LED technologies and OLED, along with backlighting technologies like Mini LED technologies.
Given Merck KGaA’s role as a key supplier for technology giants Samsung and LG, this shift in strategy comes as no surprise. Both companies have announced their exit from LCD screen production, prompting Merck to adapt its focus accordingly.
The Role of OLED Technologies in the Current Market Landscape
Currently, South Korean companies maintain a strong position in the display panel market, particularly with OLED technologies. Samsung leads the small to medium-sized OLED panel sector, which is primarily used in smartphones and tablets. Meanwhile, LG dominates the market for larger OLED screens, such as those used in televisions.
Last year, Merck announced the launch of its first OLED materials production base in China, enhancing its capabilities across the entire OLED value chain and creating a robust and flexible supply network for customers throughout China and Asia.
Merck KGaA’s New OLED Production Facility in China
This new production facility, located at Merck’s Shanghai Pudong Jinqiao plant, spans about 900 square meters and represents an initial investment of approximately $10.5 million. It is equipped with advanced production equipment and processes similar to those found in Merck’s German manufacturing sites, including digital factory operations, quality control systems, and energy-saving technologies such as waste heat recovery. Upon completion of its second phase, the facility is expected to reach a maximum annual production capacity of around six tons. This plant marks Merck’s third OLED material production facility, following those in Germany and South Korea.
Advantages of OLED and Micro LED Technologies
“Allan Gabor, President of Merck China and Managing Director of Electronics Technology in China, emphasized the importance of OLED technologies in the display industry, noting its superior visual experience and adaptability for creating foldable, bendable, and even transparent displays. ‘We aim to be the preferred partner for our customers and a vital contributor to China’s remarkable digital transformation,’ Gabor said. ‘With the opening of our OLED material production base, we have strengthened our localization capabilities throughout the OLED material value chain, from analysis and application to production, thereby creating a more flexible and stable supply chain for customers in China and Asia while actively promoting the transformation and upgrading of the display panel industry.'”
Continued Relevance of LCD Materials and Technologies
Merck’s decision to discontinue its LCD material research and development does not signify the end of LCD televisions. Companies like Vizio, TCL, Samsung, LG, and Sony continue to produce LCD televisions, as consumer demand for cost-effective LED-LCD TVs remains high.
“We will increasingly focus on OLED as it represents the forefront of innovation, and we plan to enhance our investment in this area. The opening of the ETCC demonstrates our commitment. However, LCD remains a mainstream application in the television market, acting as the primary interface connecting the digital and real worlds. Therefore, LCD technology will continue to be relevant for a long time,” Gabor stated.
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