OLED TV, leading the premium TV market, LG Electronics HE division created the largest operating profit

On the 26th, LG Electronics announced its 2017 Q3 performance through conference call. LG Electronics recorded consolidated sales of KRW 15.2241 trillion in 3Q and operating profit of KRW 516.1 billion. Sales and operating profit grew by 15.1% and 82.2% YoY respectively. Sales are the highest in 3Qs ever.

In particular, sales of premium TV increased, and HE division posted record-high quarterly results with operating profit (KRW 458.0 billion) and operating margin (9.9%). In addition, operating profit (KRW 882.9 billion) and operating margin (9.2%) are the highest in the household appliances business including household appliances and TVs.

LG Electronics announced that its HE division posted sales of KRW 4.6376 trillion and operating profit of KRW458 billion, and sales of premium TVs such as OLED TVs and UltraHD TVs increased steadily, with 12.0% YoY growth. It is known that the operating profit and operating margin (9.9%) reached a record high on a quarterly basis due to improved profit structure by expanding sales of premium products.

LG Electronics said on Oct 11 that monthly sales of OLED TV have exceeded 10,000 units for the first time in Korea and that it is speeding up its popularization. LG OLED TV has been recognized for its image quality by being awarded the top spot in the performance evaluation conducted by non-profit consumer magazines in 11 countries including the US and UK this year and the price of the 55-inch OLED TV has dropped to the mid-2 million level, and It is regarded as the cause of goodness of its sales.

LG OLED TV accounted for about 30% of domestic TV sales of LG Electronics, and it is known to have completely settled in the market. LG Electronics official announced plans for the future, ” HE division plans to continue sales growth and stable profit structure focusing on premium products such as OLED TV and UltraHD TV.”

[IMID 2017] Opening solution for next generation high-resolution OLED implementation

Various solutions for high resolution OLED implementation were released at iMiD 2017 held in COEX from October 18th to 19th. As the resolution of small and mid-sized OLEDs, which are currently being commercialized, is staying at the QHD level, the solutions released at this time have attracted a great deal of attention from display members.

First, Hwang Chang-hoon, CEO of OLEDON, who is developing plane source FMM deposition technology, announced at the business forum, “The plane source FMM deposition technology currently being developed is the only alternative for ultra-high resolution OLED manufacturing at 2,250 ppi”. Hwang Chang-hoon CEO said, “We measured the shadow distance using a-step, and it was 0.38 μm. We can fabricate OLED device with 2,250 ppi only if we have this shadow distance.” “We are currently looking for shadow-free process conditions”

<Difference in shadow distance between point source and plane source>

In addition, Hwang Chang-hoon said, “We first co-deposited the host material and the dopant material on the metal plate to evaporate the deposited green donor thin film and measure the green target thin film with the same PL wavelength for the first time” and “Color control of target thin films made with plate sources can be controlled by the amount of dopant molecules in the donor film, so color control is expected to be easy”.

<OLEDON plane evaporation co-deposition material>

AP Systems, which recently announced the successful development of 1,000 ppi FMM using ultra-short pulse laser (USPL), exhibited 5.28 inch FMM of 825 ppi and 4.72 inch FMM of 677 ppi at this exhibition. A company official said, “By developing a burr-free laser process to solve the burr problem caused by the heat generated during the fabrication process, it is possible to fabricate not only FMM of 1170 ppi but also FMM of various shapes”.

<5.28 inch 825ppi FMM of AP Systems>

Finally, Philoptics unveiled FMMs fabricated using electro forming, especially, FMM of 1,200 ppi, which attracted attention this time, was displayed separately in the VIP room. A company official said “We have secured the stability of the process for the production of 1,200 ppi FMM,” and mentioned “We plan to deliver it to panel makers for testing in the first half of next year, and aim to develop FMM at 2,000 ppi later.”

<FMM of Philoptics manufactured by electro forming method>

As such, in this iMiD 2017, various solutions for high-resolution patterning of OLEDs has been released. Recently, as the number of contents requiring high-resolution OLED such as virtual reality contents increases, interest of smartphone users are increasingly interested. It is worth noting which solution will enable the small to medium-sized UHD OLED era.

[iMiD 2017] JOLED announces printing-type OLED development trend and future road map

At the ‘IMID 2017 Business Forum’ held in COEX, Seoul from 18th to 19th, Toshiaki Arai, chief technologist of JOLED announced JOLED’s printing technology and future road map.

<JOLED’s Toshiaki Arai chief technologist>

Toshiaki Arai, chief technologist stated that a stable jetting technology at 220 ppi level has been currently secured; high resolution OLED with more than 300 ppi has been developed at Gen 8.5 but there are some issues such as jetting accuracy and stability.

Toshiaki Arai introduced TG-TAOS (top gate-transparent amorphous oxide semiconductors) TFT, which will contribute to saving the unit cost of OLED with excellent performance at low price.

He also announced the future strategy of JOLED, stressing that, instead of small and large OLED dominated by South Korean companies, the middle-sized OLED for tablet and monitor with more than 200 ppi. Joled is the only OLED panel maker that unveiled its 21.6 inch 4K RGB OLED in 2017, using printing process, and has pilot launched.

<JOLED’s 21.6 inch 4K OLED in application of printing method>

On the other hand, according to the Nihon Keizai newspaper in Japan, JOLED is reported to have invested 100 billion yen in mass production of printing-type OLED. In addition, Toshiaki Arai stated that the OLED test samples manufactured by printing process have been provided since this April and the mass production will realize in the second half of 2018.

 

OLED TV with different characteristics and advantages by set makers

LG Electronics announced on last 11th that LG OLED TV is speeding up the popularization with the monthly sales volume of 10,000 units and above for the first time in Korea. In addition, Sony, which joins the OLED TV camp in 2017, is enjoying great popularity and continues to expand its market share in the premium TV market. As such, OLED TV is leading the premium TV market by improving cost competitiveness through cost reduction as well as excellent image quality.

OLED TVs are currently being mass-produced by LG Electronics, Sony, Toshiba and Panasonic. Although all set makers that produce OLED TVs use OLED of LG Display, they are producing OLED TVs with different characteristics and advantages.

First, LG Electronics mentioned OLED’s vivid image quality and wall paper design as advantages of OLED W7 which is a signature TV. LG Electronics mentioned that OLED, which is a self-luminous element, can express near-infinite contrast ratio and rich color close to nature, and supports Dolby vision HDR and HDR10 to experience vivid image quality. Also, introduced that a 4.6mm of thin panel provided the experience of seeing the theater screen and all parts except the panel were housed in a space called innovation stage and completed the perfect wall paper design.

<OLED TV W7 of LG Electronics, Source: LG Electronics>

Sony emphasizes sound, image quality and simple design as the advantage of 4K BRAVIA OLED TV A1E series. It mentioned that the TV screen, which attracted great attention in last year’s CES 2017, can provide an enhanced immersive feeling by applying the ‘Acoustic Surface’ that the TV screen vibrates and makes sound by itself. In addition, the ‘X1 extreme processor’ HDR chip has been applied to improve the picture quality of OLED TV, and the cable is housed in the stand on the backside so that the simple design is realized.

<Acoustic Surface of Sony 4K BRAVIA OLED TV A1E, Source: Sony>

Toshiba then mentioned a high color gamut of 100% DCI-P3 and a high brightness of over 800 nits as the advantages of the REGZA X910. It said that it increased the color reproduction rate to express natural colors and improved the brightness to express the bright and dark parts in richer gradations and strengthened HDR restoration function to realize sharp and realistic high-definition video.

<REGZA X910 of Toshiba, Source: Toshiba>

Lastly, Panasonic stated that it implemented full black and rich color expressions. Especially, it emphasized that it applied ‘Hexa chroma drive plus’ which is Panasonic’s high-definition technology to express high contrast and colors hidden in dark areas that were difficult to implement in LCD TV and reproduced the emotion that the video producer intended.

<Comparison of ‘Hexa chroma drive plus’ technology application of Panasonic, Source: Panasonic>

As such, OLED TV set makers are introducing different OLED TVs that emphasize their characteristics and advantages. In addition to the above four makers, LOEWE of Germany and B & O of Denmark are expected to continue to launch OLED TVs, including mass production of OLED TVs or preparations for mass production. Based on the unique technology of set makers, it is worth noting that OLED TVs with what kind of characteristics and advantages will be produced.

Solution Process OLED, Max. 40% Decrease in Component Material Cost Possible Compared to WRGB

According to 2017 Solution Process OLED Annual Report published by UBI Research, when solution process (ink-jet printing) is applied to large area OLED, it could reduce up to 40% of component material cost, and approximately more than 18% of production cost compared to WRGB process that uses evaporation method.

 

Solution process is a technology that can manufacture RGB pixel structure of large size OLED panel without cutting mother glass using Gen8 manufacturing equipment or larger.

 

UBI Research analyst Hyunjun Jang explained that the solution process applied OLED has a simpler panel structure with 5 layers compared to 20 layers of WRGB OLED. WRGB OLED process material usage efficiency is only at 40% but solution process application could increase this to over 90%. Jang added that the lack of color filter is a factor that could decrease panel production price by reducing development cost. Particularly, this can greatly reduce emitting materials usage which occupies much of materials cost and contribute considerably to the fall in production cost. Furthermore, he added that cost setting of soluble emitting material per gram will be an important factor in production cost decrease and emphasized that organic material usage greatly decreases when soluble emitting materials are used but must consider price increase due to solvent cost, production cost, and development cost.

 

Solution process technology continues to receive attention as a key technology that can lead popularization of large area OLED, and key AMOLED panel companies are carrying out development.

 

In terms of technology, solution process OLED has lower emitting efficiency and short lifetime as diverse solvent is added to existing evaporation materials to transform into ink leading to low purity. This has been an important issue for panel and material companies for past several years. To improve this, DuPont, Merck, Sumitomo Chemical and others have been actively developing soluble OLED emitting materials. Much like evaporation materials, blue materials showed particular difficulty in performance improvement. However, at present significant portion of technology development has been carried out and investigation shows approximately 80% of lifetime and efficacy of has been achieved compared to evaporation materials.

 

2017 Solution Process OLED Annual Report compared and analysed WRGB OLED and solution process OLED’s competitiveness in terms of process, materials, and cost. Key issues, soluble OLED emitting materials development status, key companies’ trend, and solution process OLED market are analysed from various perspectives.

<Source: WRGB OLED and solution process OLED production cost comparison, UBI Research 2017 Solution Process OLED Annual Report>

Is there possibility of High resolution(UHD) OLED Smart-phone generation?

Recently VR contents experience through smart-phone device has been increased, therefore high resolution of smart phone is becoming necessary. However, OLED smart-phone resolution still remains at QHD level for 3 years since QHD OLED is applied to Galaxy Note 4 for the first time in 2014.

The core point that decides resolution of OLED smart-phone is evaporation process for emission layer. Bottom-up type evaporation method, which is applied to the recent devices is that substrate and FMM (fine metal mask) are horizontally arranged on the upper side of evaporator and vaporize the organic material from the lower linear source in order to form RGB layer.

Thin FMM measures less than 15um thick is necessary for making high resolution OLED like UHD level, however, as FMM gets thinner, it would be difficult to make mass production because technical problems will be occurred such as patterning, sealing and welding.

In order to solve these problems, various metal mask patterning technologies are being developed such as vertical type evaporation and plane source evaporation.

Vertical type evaporator that arranges board and FMM vertical is developed by Hitachi of Japan for the first time. And Canon Tokki exhibited Gen6 vertical type evaporator at Finetech Japan 2013, however it is not being used for mass production at the moment.

<Canon Tokki’s Gen6 vertical type evaporator which is exhibited at Finetech Japan 2013>

According to the recent ETNEWS, Applied Materials developed Gen6 flexible OLED vertical type evaporator and it is being tested in Japan Display.

Plane source evaporator is being tested but also the linear source type. Plane source evaporator method is that an organic material is first evaporated on the metal surface to produce plane source, then re-evaporated in order to form an organic thin film on the substrate.

In the past iMiD 2017, representative of OLEDON, Chang Hoon Hwang mentioned that 2250 ppi resolution OLED can be implemented through plane source evaporator.

For metal mask patterning technology, electro forming and laser patterning technology is highlighted. Electro forming method is developed by Wave Electronics, TGO Technology, Athene and so on. Laser patterning technology is being developed by AP Systems.

As such, development for high resolution OLED is receiving great attention whether it can solve the current problems and contribute to UHD resolution implementation for OLED smart-phone.

<Principle of plane source evaporation developed by OLEDON>

LG Electronics, Big step on popularization of OLED TV

<OLED TV of LG Electronics Source: LG Electronics>

LG Electronics OLED TV is speeding up its popularization with exceeding monthly sales of 10,000 units for the first time in Korea.

‘LG OLED TV’ was sold every four minutes last month. Compared to the beginning of this year, it’s double. LG Electronics expects sales increase of OLED TVs in the future and to rapidly increase market power.

The secret to increasing sales is recognition of outstanding image quality. LG OLED TV, this year, was first in the performance evaluation conducted by nonprofit consumer magazines in 11 advanced markets including the US, UK, Germany, France, Italy, Spain, the Netherlands, Sweden, Belgium, Portugal and Australia. Unlike LCD TVs, the contrast ratio is high because it emits light without backlight. So it presents perfect black and realizes a lively screen.

Consumers consider picture quality the most when purchasing TV. According to a consumer survey conducted by LG Electronics, over 40% of the respondents cited image quality as the top priority when purchasing TVs. This percentage is the highest of all purchasing considerations.

Reasonable price is also the cause of good sales. LG Electronics has continuously developed technology for more consumer to experience OLED TV image quality so as to reduce the. 55-inch OLED TV prices have fallen to the mid-2 million won. It is no different from premium LCD TVs. In 2013 when LG Electronics first launched OLED TV, it was worth 15 million won.

‘LG OLED TV’ accounted for about 30% of LG Electronics domestic TV sales this year and settled perfectly in the market.

Son, Dae-Gi, LG Electronics Korea HE Marketing FD, emphasized “we will expand sales to allow more customers to enjoy ‘LG OLED TV’ image quality and have a solid profit structure by raising premium market power”.

Fraunhofer FEP will show bidirectional AR / VR head mounted display devices based on OLED microdisplay.

Fraunhofer FEP announced that they would show bidirectional AR / VR head mounted display devices based on OLED microdisplay at AWE Europe 2017 from October 19-20. According to Fraunhofer FEP, OLED microdisplay supports SVGA (800 x 600) resolution and can display augmented reality and virtual reality of 2D and 3D content via USB interface and HDMI connection. In addition, it is known that it is possible to use an eye tracking system that uses a photodiode to detect a user’s gaze.

<New HMD device of Fraunhofer FEP, Source: Fraunhofer FEP>

Judith Baumgarten, developer of Fraunhofer FEP, commented, “This exhibition will showcase the quality and versatility of OLED microdisplay,” he said. “It will be a great opportunity to demonstrate Fraunhofer FEP know-how in electronic design.”

In the meantime, AR/VR devices have been developed mainly in the fields of entertainment and games. Fraunhofer FEP, however, is expected to support designers, engineers, surgeons, etc. and enable them to be used as educational media in almost every field.

On the other hand, augmented reality and virtual reality technology are attracting great attention as one of the main technologies of the 4th industrial revolution that has recently attracted attention, and products such as Oculus Rift and Gear VR are continuously being released. According to UBi Research, the AR/VR market will expand full scale in 2019, when 5G is introduced, which can mass-produce UHD contents and transfer large volumes of content fast and the total revenues of virtual reality and augmented reality products will reach $ 58.7 billion by 2021.