It is expected that Samsung Display will focus on producing panels for tablet PCs and notebooks to compensate for the reduced utilization rate of the A2 line due to the low-cost flexible OLED offensive of Chinese panel makers.
At the ‘2023 OLED & Micro Display Analyst Seminar’ held at the Federation of Korean Industries in Yeouido on the 5th, Choong Hoon YI, CEO of UBI Research, gave a presentation on ‘IT OLED industry trends and market prospects’.
CEO YI said, “Samsung Display is expected to focus on rigid OLED production for tablet PCs and notebooks to compensate for the reduced utilization rate of the A2 line due to the low-priced offensive of Chinese companies. As much as it focuses on IT OLED production, the shipment of rigid OLED for smartphones will drop sharply, but it is possible to maintain sales by producing rigid OLED for IT with high added value.” And he also said, “LG Display will start mass production one year later than Samsung Display, and BOE will start mass production at least two years later than Samsung Display.”
According to CEO Choong Hoon YI, LG Display’s decision is being delayed because it is difficult to secure funds for investment in new lines due to the deficit caused by the delay in switching from LCD lines to OLED lines. Nevertheless, LG Display is expected to be able to supply IT panels to Apple from 2026. However, there are still problems to be solved, such as stabilizing the process and securing yield of Sunic system equipment whose production capacity has not yet been verified.
BOE has invested in three OLED line factories for smartphones, but the operation rate is at a level of only one factory, and the Beijing city government is very dissatisfied with over-investment due to insufficient securing of Apple supplies. For the reasons mentioned above and because securing customers for IT OLED has not been decided, BOE’s IT OLED line investment is expected to take at least two years.
CEO YI said, “Chinese panel makers are trying to increase their market share with low-priced attacks, but domestic companies that have secured large customers such as Samsung Electronics and Apple have a significant advantage in competition. In the future, the OLED industry for TV and IT will be developed mainly by Korean companies.”