After restricting the export of advanced chips/equipment to China, the Biden administration may target China's OLED panel industry next, according to South Korean media.

The Korea Times reported on April 27, citing two unnamed sources, that Washington may expand its efforts to clamp down on China's technology development, and that the Biden administration may target the panel industry next.

Semiconductors are of strategic importance to advanced civilian and military equipment, and panels, especially OLED, are increasingly seen as a key technology for national security, the paper cited sources as saying.

A senior government official familiar with Seoul's trade policies told The Korea Times in a telephone interview that Washington's rationale for regulating the export of advanced semiconductor equipment is that high-end chips play a central role in the daily needs of the U.S. economy and are a matter of national security. Thwarting China's dominance of the OLED industry could boost growth for the U.S. and its Allies, the official said, leading to the possibility that Washington could impose export controls on OLED chips.

An aide to former South Korean President Moon Jae-in said two years ago that officials in Washington seriously considered limiting exports of OLED manufacturing equipment and materials with the help of South Korea, Japan and Taiwan. However, with OLEDs likely to be replaced by traditional liquid crystal panels (LCDS) and leds, and China having several good panel makers, Washington decided to call it a day and target the Chinese chip industry instead. That said, the Biden administration's focus is likely to shift to OLED, as the U.S. and trade rivalry with China shows no sign of being resolved.

But Zack Cooper, a former White House National Security Council official, said export controls may not be a high priority for Washington because OLED has limited military applications. OLED may be more advanced than other similar technologies, but it can still be easily replaced by more mature ones. As a result, he is skeptical that the U.S. will regulate OLED technology.

What will be the impact of a U.S. ban on China's OLED industry?

If the U.S. imposes sanctions on China's OLED industry, it will have a big impact on the world. OLED is a new display technology, with high color restoration, high contrast, high brightness, low power consumption and other advantages, is widely used in smart phones, televisions, computer monitors and other fields. Currently, the global OLED industry is dominated by companies from countries such as South Korea, Japan and China, among which China's OLED industry is also growing.

If the U.S. imposes sanctions on China's OLED industry, it will first have an impact on China's OLED industry chain. China's OLED industry chain is relatively complete, involving many fields including organic luminous materials, equipment, display panels and so on. It will affect the operation of the whole industrial chain, resulting in reduced production capacity, limited technological development and other problems.

Secondly, it will also affect the global OLED industry landscape. China's OLED industry has a certain influence globally, and sanctions against the Chinese OLED industry will lead to a reshuffle of the global OLED market share. However, due to the uniqueness of OLED technology, it is difficult for enterprises from South Korea and Japan to fully fill the vacancy in China's OLED industry, which will affect the development of the global OLED industry, and may lead to the rise of OLED product prices, affecting consumers' purchase intention.

In addition, sanctions on China's OLED industry will also affect global technology cooperation and innovation. OLED is a cutting-edge technology, which requires the cooperation of enterprises and scientific research institutions around the world to continuously promote the development and application of the technology. Sanctions on China's OLED industry will limit global cooperation and innovation, hindering the development of OLED technology.

Therefore, if the US bans China's OLED industry, it will have a broad impact on the world, not only affecting China's OLED industry chain, but also posing challenges to the development of the global OLED industry and scientific and technological innovation.

Gestant Display Technology Co.,Ltd. could provide a series of LCD and OLED products, such as AMOLED Screen, PMOLED Screen, Round Display Screen, Flexible Display Screen, TFT LCD, Mono-LCD and Bar Display Screen. Customize PCBA/LCD/OLED/FPC/Backlight/Coverlens/TP solutions.

Gestant Display Technology Co.,LTD was founded in 2012 in Shenzhen China. Even, the founder of the company, has more than 15 years of rich experience in LCD display industry. He has been engaging in the basic research of LCD display technology in Japan since his graduate school and has been working in the flat panel display industry after graduation.

Proficient in the manufacturing process and technology development of LCD / OLED / polarizer, Even was also one of the members of China liquid crystal Association who has a senior industry background and supply chain resources. In the past three years, he assisted his shareholders in building factories, purchasing equipment，establishing production lines, and successfully obtaining ISO9001 and ISO14001 system certificates.

He has established good business relations with major panel manufacturers in China (BOE /Tianma / IVO /EDO / Visionox), and the glass supply is stable and sufficient.

Gestant Display's products are widely used in Smart wear，Smart home，Outdoor photography，IP phones, Medical care, Industrial control equipment, Automotive and Vehicle displays, Instrumentation, and other Information terminal applications which could offer long-term after-sale services(such as 2 years quality warranty, long-term supply) .