The panel industry serves as a hallmark of China's high-tech industry, surpassing Korean LCD panels in just over a decade and now launching an assault on the OLED panel market, putting immense pressure on Korean panels. In the midst of unfavorable market competition, Samsung attempts to target Chinese panels with patents, only to face a counterattack from Chinese panel manufacturers.

Chinese panel companies started their journey in the industry by acquiring a 3.5th generation line from Hyundai in 2003. After six years of hard work, they established a globally leading 8.5th generation line in 2009. In 2017, Chinese panel companies began mass production on the world's most advanced 10.5th generation line, surpassing Korean panels in the LCD panel market.

In the following five years, Chinese panels completely defeated Korean panels in the LCD panel market. With LG Display's sale of its last 8.5th generation line last year, Korean panels have completely withdrawn from the LCD panel market.

Now, Korean panel companies face fierce challenges from Chinese panels in the more advanced OLED panel market. Samsung and LG Display of Korea previously held the top two positions in the global market for small and medium-sized OLED panels. Samsung, in particular, had more than 90% market share in the small and medium-sized OLED panel market for a considerable period of time.

However, since BOE began producing OLED panels in 2017, Samsung's market share in the OLED panel market has continuously declined. By 2022, Samsung's market share in the global small and medium-sized OLED panel market had dropped to 56%. When combined with LG Display's market share, it was less than 70%. Meanwhile, BOE's market share in the OLED panel market had reached 12%, surpassing LG Display to become the second-largest globally. Five out of the top ten companies in the global OLED panel market are Chinese enterprises. 

This year, BOE is expected to make significant progress in the OLED panel market. It is rumored that Apple will assign approximately 70% of the OLED panel orders for the low-end iPhone 15 to BOE. This will further increase BOE's market share in the global OLED panel market. 

It is at this time that Samsung initiated a patent lawsuit. Samsung accuses BOE of infringing OLED technology patents and has filed a patent infringement investigation with the International Trade Commission (ITC) in the United States. Industry insiders believe that Samsung's move is aimed at undermining BOE's iPhone 15 orders. After all, Apple is Samsung's largest customer, and BOE is Samsung's biggest competitor. If Apple were to abandon BOE due to this, Samsung would become the biggest beneficiary. BOE did not sit idly by and has also initiated patent litigation against Samsung. BOE has the confidence to do so.

In 2022, BOE ranked among the top ten companies in terms of PCT patent applications and ranked eighth in terms of granted patents in the United States. It has obtained 2,725 patents in the United States. Although there is a gap between BOE and Samsung's 8,513 patents, BOE's patents are almost entirely focused on display technology, while Samsung's patents cover storage chips, CMOS, displays, and mobile chips. Samsung may not necessarily hold an advantage in display patents.

BOE's willingness to confront Samsung's patent litigation highlights its advantages in core technology. Starting from the most fundamental display panel technology, BOE has accumulated years of experience, with solid foundations and strong technical capabilities, giving it enough confidence to handle Samsung's patent lawsuits.

Presently, Samsung is facing tough times. Its net profit in the first quarter of this year plummeted by 96%. Its TV, mobile phone, storage chip, and panel businesses are all facing competition from Chinese counterparts. In the face of unfavorable market competition, Samsung reluctantly resorts to patent litigation, seemingly reaching a point of desperation. Meanwhile, BOE demonstrates a thriving momentum, continuously seizing Samsung's market share. In this battle between the two giants, who will emerge as the ultimate winner?