OLED for mobile phones surpasses LCD next year

It is reported from the industry that the Chinese government no longer subsidizes the TFT-LCD industry, and instead fully supports OLED (AMOLED, Active Organic Light Emitting Diode). In order to get more subsidies, BOE will encourage BOE and others to actively invest in OLED panels. It is expected that 2019 will be a year in which the production capacity of OLED panels will explode.

In the past, 95% of the global OLED panel market was almost exclusively dominated by Samsung Display, but this year, in addition to LGD joining the battle, Chinese manufacturers have also accelerated their pace and actively deployed; according to CINNO Research, As of the end of June this year, there are as many as 11 OLED production lines that have been built and are under construction in China.

According to the forecast of the research institute IHS, Samsung Display’s OLED panel market share will decline rapidly from 95% in its heyday to 52% in 2020; BOE jumps to second with 15% and LG Display with 11%. Third, Tianma and China Star Optoelectronics in Mainland China ranked 4th and 5th with a market share of about 5 to 6%.

IHS predicts that in 2019, the penetration rate of OLED for smartphones will surpass LCD for the first time to 50.7%, with a market value of approximately US$20.7 billion. In 2025, the penetration rate of OLED will further increase to 73%. . In terms of TV panels, OLED has become synonymous with high-end TV products; according to IHS statistics, TVs priced at more than US$2,000 in the second quarter of this year have an OLED penetration rate of 59% in Japan, and about 45% in North America and Europe.

According to the information provided by BOE, the Chengdu AMOLED production line has been mass-produced and shipped in October 2017, and the current yield rate is over 70%, and hopes to exceed 80% by the end of this year. Mianyang’s 6th-generation flexible The AMOLED line is expected to start production next year.

In addition to the existing two production lines, BOE also announced at the investor conference held a few days ago that it will spend RMB 46.5 billion to build the third 6th generation flexible AMOLED production line in Chongqing. Construction officially started on Japan.

Accumulated, BOE’s total investment in OLED panels is as high as RMB 139.5 billion, with a monthly design capacity of nearly 150,000 substrates, and each substrate can cut 200 pieces of 6-inch screens.

In addition, in June 2017, Huaxing Optoelectronics invested 5.46 billion U.S. dollars, code-named T4, the sixth-generation OLED production line officially started in Wuhan, and mass production is expected to begin in 2019; news from the industry in August this year pointed out that Huaxing Optoelectronics' 6th-generation OLED factory has begun trial mass production; the T4 production line is designed to have a total capacity of 45,000 pieces per month, and the first phase of trial mass production has a capacity of 15,000 pieces.

As Chinese panel makers compete to invest in OLED, Samsubg Display has also begun to open up another battlefield to pave the way for the next generation of new product lines. Due to lower-than-expected iPhone X sales, Samsung Display’s OLED A3 plant's utilization rate fell to 50-60% in the first half of this year. According to a report by Korean media ET News, although the two production lines of the A4 plant have completed preparations for mass production, they will only be first. Use one of the production lines.

In terms of large TV panels, Samsung Display will close the 8.5-generation LCD factory in mid-2019 in order to concentrate all resources on QD-OLED, which has a lower production cost but can technically solve the problem of LCD for Samsung aging ; Samsung Display will establish a small-scale QD-OLED trial production line in 2019, and invest 8.9 billion US dollars in the next three years to fully develop QD-OLED.

Compared with Samsung Display’s leading advantage in small and medium-sized OLED panels, LG Display is focusing on large-sized OLED TV panels. LG Display will set up a 10.5-generation OLED in Paju, South Korea in the next two years. The production line and the 6th generation flexible OLED production line; if coupled with the 8.5th generation OLED production line in Guangzhou, LG Display’s total investment in OLED will be as high as US$13.5 billion in 2020.

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