Display協 "Triple the Localization Rate of Equipment Parts Within 5 Years"

'Launch of Display Process Core Unit Council'... Target Increase from 9% to 30%

Inauguration ceremony of the 'Display Process Core Unit Council'. (Photo by Korea Display Industry Association)

[Asia Economy Reporter Moon Chaeseok] The Korea Display Industry Association announced that the 'Display Process Core Unit Council' for stabilizing the domestic display parts supply chain was launched on the 28th.

The council held its inauguration ceremony at Sono Felice Convention in Gangnam-gu, Seoul, and officially launched. The council includes 45 display parts companies centered around the association.

According to the association, the localization rate of the domestic display industry is about 70% for equipment and 60% for materials, but the localization rate for equipment components is only around 9%. The association plans to raise the localization rate of equipment components to more than three times the current level within the next five years, centered on the council.

The association investigated the supply chain of 17 core equipment components for the organic light-emitting diode (OLED) front-end process and found that the overseas dependency of these items reached about 90%. The association explained that most of these components have been delayed from the original delivery time by 3 to as long as 9 months, which is a major cause of the prolonged equipment lead time (the time from order to actual delivery).

Accordingly, the council set a goal to raise the localization rate of equipment components to about 30%, more than three times the current level, within the next five years. To achieve this, they plan to strengthen cooperation on display equipment components among Korea, the United States, and Japan, expand suppliers, and support technology development.

Lee Dong-wook, vice chairman of the association, said, "To establish a stable supply chain, it is necessary to increase the localization rate not only for materials and equipment but also for components." He added, "With the implementation of the Ministry of Trade, Industry and Energy's technology development project for display equipment components next year, we will promote the localization of equipment components."

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