[Press Release] AMOLED components and materials market grew to $ 24.15 billion in 2023

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Although Samsung Electronics and Apple’s OLED smartphone market are stalled, Chinese smartphone makers are gradually increasing their use of OLEDs based on the huge smartphone market in China. As a result, BOE and Chinese panel makers have aggressively established a Gen6n flexible OLED plant, which is driving the OLED industry.

As a result of UBI Research’s panel makers’ operation rate analysis due to OLED plant expansion and supply and demand, the market for various component materials (excluding light emitting materials) that make up OLEDs is expected to reach $13.9 billion in 2019 and expand to $ 24.15 billion in 2023.

Recently, as the production of foldable OLED has started, various kinds of films that are not applied to LCD are emerging as core materials.

In the [2019 OLED Components and Materials Report] published by UBI Research, we examined the foldable OLED structure of Samsung Display, LG Display, and BOE, and analyzed the thickness and characteristics of the films that make up the module.

In the OLED components and materials market, components for TV OLEDs will grow rapidly to reach $ 19.1 billion in 2023 and lead the OLED industry.

OLED Daily Issue, April 25, 2019

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▶ LGD’s performance is in the doldrums. This year, it will compete with high-value OLEDs. (ZDNet Korea)

(Full text of article: http://www.zdnet.co.kr/view/?no=20190424130827)

While LG Display is recording poor performance in first quarter of this year, it is going to strengthen its competitive edge in OLED display, which is its main business. Because it is expected that Chinese LCD will continue to make inroads into supplies this year, Samsung Display is planning to bring about results through high-value OLEDs that are highly profitable.

“It seems that large OLED business will take up more than 30% of TV business in 2016 through changes in customer and high-end position.” said Seo Dong-hee, chief financial officer of LG Display, during a conference call on the first quarter of 2019.

“Although some fixed expenses are also expected in second half of this year due to preparation of (Guangzhou OLED fab) production infrastructure as planned, we will increase profit contribution starting from 2020.” said a representative for LG Display.

■ It is difficult to rebound in second quarter performance…compete with high-value OLED in second half.

LG Display also expects that its second-quarter earnings will continue to worsen market conditions due to oversupply of LCDs and lack of IT products. Consensus of second quarter’s performance that F& Guide is estimating is $5.58 trillion (5.8181 trillion KRW) in sales and $16 billion (16 billion KRW) in operating loss.

However, it is expecting that it will produce results starting from second half of this year due to operation of OLED production lines that are located in Guangzhou, China, and release effects of transparent and automatic OLEDs.

“We believe that Guangzhou fab will operate successfully during first half of this year. “We are also preparing to apply MMG (Multi Model Glass, which is a method that is produced by combining 55-inch and 65-inch panels) to Guangzhou and Paju fab.” said a representative for LG Display.

Furthermore, transparent OLED products will be released in second half of this year and will expand additional demands. “We are currently working with variety of customers in commercial business.” said a representative for OTO, “Auto is already making more than 1 trillion won in sales through LCD. During this year, you will be able to see vehicles with plastic OLEDs. Although it is difficult to mention exact numbers, South Korea has received a large number of orders for displays for vehicles that employ POLEDs. We believe that orders will also gain considerable momentum when cars with POLED are successfully released this year,” he stressed.

 

▶ FineTec Receives Intent for Purchase of OLED Bonding Equipment from Chinese Firms(NEWSPIM)

(Full text of article: http://www.newspim.com/news/view/20190424000218)

While demands for OLED panels are increasing rapidly due to the resumption of investments in Chinese OLEDs this year, FineTec is trying to expand its supply of bonding equipment to Chinese display-specialized companies.

FineTec made an announcement on the 24th that it recently received orders from Chinese display company BOE for OLED composite bonding equipment and received LOI (Lent of Purchase of OLED bonding equipment) from CSOT.

FineTec is planning to supply CSOT with equipment dedicated to chips on plastic and COP-COF (chip on film) and other composite equipment that can be produced simultaneously. It is predicted that it will sign a contract with CSOT to supply bonding equipment after discussing detailed timing of supply.

In addition, FineTec, which is currently seeking to diversify its suppliers to China, is planning to strengthen its competitive edge in operation such as OLED composite bonding equipment for CSOT starting with this contract.

“Chinese OLED panel manufacturers are increasing their market share thanks to government support and Chinese Smartphone manufacturers’ promotion.” said a representative for this company. “FineTec is planning to focus on improving performance by securing orders from Chinese suppliers as China is actively seeking to increase its market share in OLED.”

It is also expected that FinTec’s combined bonding equipment will expand its competitive edge in markets in China. Although FinTec had about 10% of orders for bonding equipment that was placed in China three years ago, percentage of orders from Chinese display companies such as BOE and Visionox increased to 26% last year due to increased demands for composite equipment.

“We are currently converting variety of display panels from facilities that are targeted at specific types of panels from China and around the world into multi-functional equipment that can be produced at the same time.” said a representative for Samsung Electronics.

OLED Daily Issue, April 24, 2019

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▶ ‘Other in 6 months’…BOE, 4th time to invest in flexible OLEDs. (Electronic Times Internet)

(Full text of articles: http://www.etnews.com/20190423000190)

BOE is going to start construction of its fourth 6th generation flexible OLED plant soon. It is planning to invest a total of 46.5 billion yuan (approximately 7.9 trillion won) to have a monthly production capacity of 48,000 sheets. Although the display market is slumping and demand for flexible OLEDs for smartphones is falling short of expectations, it is speeding up aggressive investments and expanding production capacity.

According to Chinese media on the 23rd, BOE is going to start constructing its fourth flexible OLED plant called ‘B15’ that will be invested in Fuzhou. It is heard that it will hold an event soon and make official investments.

As BOE is going to carry out its investments in B15, it has become clear that it will have production capacity of world’s largest 6th generation flexible OLEDs by beating Samsung Display.

 

▶ ” LCD TV panel price rebound…accelerates large OLED conversion” (The Korea Economic Daily)

(Full text of articles: https://www.hankyung.com/finance/article/2019042322206)

“The price of LCD TV panels increased +0.7% in second half of April compared to first half.” said KB Securities on 23rd.

“The price of LCD TV panels in the second half of April, which was announced by Witzview, has increased +0.7 percent compared to the first half,” said Dong-won Kim researcher. “The prices of 32-inch and 55-inch LCD panels increased +1.3% compared to the first half of April, and prices of 65-inch and 75-inch panels recorded 0.5% and 1.1% respectively, showing good trend of prices.” said a slight decrease in prices of PC panels compared to the previous quarter.

While positive trend of LCD prices is continuing in second quarter, it is predicted that businesses can convert large OLED panels faster. “If Samsung Display’s QD-OLED conversion investment for 8th generation LCD lines starts in earnest in the second quarter, price of 32-inch TV panels will continue to rebound slightly due to psychological impact on reduction of supply.” said Kim. “For 65-inch, 75-inch TV panel prices, production of Chinese panel manufacturers will expand, operation of 8th generation LCD lines of Samsung Display will slow down.”

OLED Daily Issue, April 23, 2019

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▶ China also produces war skills… unstable OLEDs(THE DONG-A ILBO)

(Full text of articles: http://news.donga.com/3/all/20190421/95157197/1)

The Chinese companies’ volume offensive raised concerns that the OLED industry, following liquid crystal displays, could face oversupply problems. Analysts say that while South Korean display manufacturers’ performance in the first quarter has deteriorated due to a sharp drop in prices of LCD panels, even OLEDs, which are seen as new growth engines, could be on the verge of oversupply in the near future.

According to a recent report released by Hana Financial Management Research Institute on Monday, the production capacity of OLED plants currently being built by Chinese companies such as BOE, CSOT and TCL is twice that of South Korea.

 

▶ Retirement of OLED business for general lighting… Accelerate selection and focus of ‘New LG’ (The Korea Economic Daily)

(Full text of articles: https://www.hankyung.com/economy/article/2019042211521)

LG Group is speeding up efforts to reorganize its business portfolio for future growth. LG Display’s decision to withdraw from its organic light-emitting diode (OLED) business for general lighting is part of its objection. The “choice and focus” strategy has become a keyword that penetrates LG Group Chairman Kwang-mo Koo “New LG,” who headed the group last year.

According to LG Group and others on the 22nd, LG Display has given up its OLED business for lighting that it has been pushing as a new growth engine. It has been about a year and six months since it started mass-producing products from new OLED production lines.

It is heard that LG Display has decided to withdraw from markets by gradually reducing mass production of OLEDs for lighting that are produced at 5th generation OLED lines (P5) in Gumi, North Gyeongsang Province. Instead, it has decided to focus on OLED markets for vehicles that have huge growth potential and can produce synergy with the group’s automotive electric field (electric and electronic devices) business. LG’s acquisition of ZKW, which is a global automotive headlamp manufacturer, also affected LG’s ability to provide lighting for vehicles.

LG Display entered the general lighting market by introducing a new brand called ‘Luplex’ at the end of 2017. However, it is rumored that it has decided to give up its business after losing out on price competition from current LED (light emitting diode) lighting companies.

OLED Daily Issue, April 22, 2019

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▶ OLED is also worried about oversupply…” China factory size, twice that of Korea.” (YONHAP NEWS)

(Full text of articles: https://www.yna.co.kr/view/AKR20190419148900003?input=1195m)

Following LCD panels, there are predictions that oversupply can become a reality for OLED panels.

Concerns are growing as South Korean companies plan to grow OLEDs into new “cash cow” instead of LCDs that China has taken the lead.

According to a recent report released by Hana Financial Management Research Institute on 21th, the number of OLED panel factories currently under construction in China is 419,000 sheets per month, about twice the amount of 225,000 sheets per month, which is the size of South Korea’s expansion.

According to the report, China’s BOE, which ranks first in LCD panel market, is going to increase its size to 144,000 panels. In addition, Chinese panel manufacturers such as CSOT, Visionox, and TCL are also scrambling to expand their facilities on a large scale.

Among South Korean companies, LG Display is set to operate its 90,000-unit monthly plant in Guangzhou, China, and it is expected that there will be a total of 45,000 panels per month in Paju.

Industries predict that size of OLED plant that will be built by Samsung Display in Tangjeong, South Chungcheong Province, will reach 90,000 sheets per month.

“As speed of expansion of OLEDs in South Korea and China is much faster than rate of increase in demands, there is a high possibility that oversupply will worsen.” said Joo-wan Lee, a researcher.

 

▶ The screen shield that caused controversy over faulty Galaxy folds…Why do I need it? (Yonhap news)

(Full text of articles: https://www.yna.co.kr/view/AKR20190421010700017?input=1195m)

Samsung Electronics’ first foldable Smartphone was embroiled in controversy over its screen defects even before it was released. Samsung Electronics explains that this happened because early users removed “screen protection film,” which can be misunderstood as screen protection film.

<Samsung Electronics [Samsung Electronics Co., Ltd.]>

According to industries on the 21st, current Smartphones are going to protect displays by attaching cover windows with reinforced glass material on top of OLED display panels.

OLED panels themselves are very thin like vinyl and are weak against external shocks. Plastic OLED (Plastic OLED) that is used for foldable Smartphones is more vulnerable to scratch. However, it can’t put glass, which is a material that doesn’t fold, so it is finished by applying film of plastic material.

“Although screen protection films that we already know are additional products that prevent scratching, protective films that are used for flexible displays are very important for displays.” said Professor Hak-seon Kim of UNIST, who is a former vice president of Samsung Display. Ok-hyun Jeong, an electronic engineering professor at Sogang University, also said, “The fact that we took out a protective film from PLED is tantamount to ripping off the display parts themselves.”

OLEDs emit light as organic materials, and due to their characteristics, they are very susceptible to oxygen and moisture components. When a thin panel itself is subjected to strong pressure during a screen’s opening, it can cause the screen itself to become indigestion due to moisture in an empty space.

Plastic has a weaker hardness than glass, making it easier to scratch the surface.

In addition to screen glitches, the media that received Galaxy Folders for review such as Bloomberg and Derverge points out that the protective film is easily dented or scratched. One reviewer said, “I tapped the screen with my fingernails, but there are still permanent marks.”

Some point out that there is a gap between the protective film and the display, which makes it easier for dust and others to get rid of it. One reviewer suggested a photo showing the gap between the screen’s protective screen and bezel, suggesting that it could be misleading.

Due to this reason, Samsung Electronics explained that its screen shield is for ‘replacement’. Since there is a higher chance of damage such as scratch than conventional glass, they were made so that they could be replaced at that time. However, users should not replace them directly and go through a service center.

Experts point out that such precautions should be sufficiently notified to consumers before the launch, and that early users also need to follow basic precautions as they use first-generation products.

Jeong said, “Samsung Electronics seems to have lacked notice of screen protection. “We need to strengthen advance notice when it is officially released.” said a person who dropped it from the company, which is about 100 grams more than normal Smartphones, risks further damage when it is dropped from the same location. This part also requires the user to pay attention,” he pointed out.

“Since the film itself is a plastic material, even if it is attached with protective film, it can be pierced and torn if exposed to sharp needles, unlike glass,” Professor Kim said. “In fact, these precautions should be properly introduced when selling it.”

 

▶ SK is investing in OLED business? (etoday)

(Full text of articles: http://www.etoday.co.kr/news/section/newsview.php?idxno=1747027)

SK Corp. is considering investing into OLED material business. As OLED markets are rapidly growing, industries that are made of OLED materials are also increasing.

According to mid- and long-term management plan data that SK Corp. held a corporate briefing for analysts of securities companies on Wednesday, SK Corp. is also reportedly considering investing in OLED materials to expand its material business.

SK Corp. has set a mid- and long-term strategy for its material business to expand its high-growth area by utilizing its current material platform.

For OLED materials, LG Display is planning to develop its own technologies by linking current SK Trichem’s technologies such as precursors and others while also considering investing in them.

Industries predict that SK Corp. will be able to expand its business through investments as it is an investment-type holding company.

For battery materials, which are planning to enter markets with high-entry barrier materials through partner companies’ cooperation and investment in technology holding companies, it has quickly entered the market by investing 270 billion won into shares of related companies.

SK Corp. previously acquired the stake in Watson, China’s No. 1 company that manufactures the second-order essential part of the battery, in November last year.

A reason why SK is showing interest in OLED markets is because OLED markets are growing rapidly.

According to a market research company called Ubi Research, size of OLED display market was estimated to be $28.31 billion (31.9568 trillion KRW) last year, which is a 7.1% increase year-on-year and is expected to grow to $32.3 billion (36.457 trillion KRW) this year.

It is expected to grow to $59.5 billion by 2023.

As a result, many other companies are working on OLED materials. Earlier this month, LG Chem stepped up its related business by acquiring material technology for “Solid Organic Light Emitting Diodes,” a key platform for next-generation displays, from DuPont in the U.S.

Doosan also established a new company through division of its business sector to strengthen its material businesses such as OLED.

“We have no specific plan to invest in OLED materials yet.” said a representative for SK Corp.