Opinion | Why geoeconomics could crack your smartphone screen as OLED supply chains come under scrutiny
- Production of OLED displays is presently driven mainly by smartphones but demand for the technology is rising in areas such as wearables, televisions and tablets
Americans now spend more time using mobile devices than watching television, clocking an average of 3 hours 43 minutes a day, meaning they likely touch a smartphone screen more than anything else – except perhaps a keyboard.
That screen, especially on flagship devices like the latest Google Pixel 4 or iPhone 11 Pro, is more than just glass. Beneath the surface is a technology that is widely hailed as the future of electronic displays: the organic light-emitting diode (OLED).
OLED displays are superior to prevailing liquid crystal displays (LCDs) because they deliver more vibrant visuals, allow for thinner devices, have faster response rates, and provide greater energy efficiency. OLEDs also underpin the emergence of devices with flexible screens, a market projected to grow 35-fold by volume between 2019 and 2025.
Despite their superior performance, OLEDs are still expensive compared to LCDs, and much more so at larger sizes. For example, the OLED is the most expensive component in an iPhone X, according to IHS Markit, representing nearly 30 per cent of the total cost of production.
Production of OLED displays is presently driven mainly by smartphones but costs could fall quickly as demand for the technology rises in areas such as wearables, televisions, tablets, virtual reality headsets, autonomous vehicles, and even military-use control panels and head-mounted displays. Reaching cost-parity with LCDs would effectively commoditise OLEDs.
Yet few policymakers give much thought to the geoeconomics of these screens, a key input in our all-consuming digital economy. More serious consideration of OLED supply chains is needed, particularly as trade conflicts rage in East Asia and as China becomes a high-tech manufacturing power.