Did Samsung Decide?
We have mentioned that Samsung Display has been developing a vertically oriented OLED Gen 8 deposition tool with Ulvac (6728.JP) on which it hopes to produce IT OLED displays. The concept of a vertical deposition tool is one that has been suggested as a way to avoid the issues surrounding the use of fine metal masks that create sub-pixel patterns as OLED materials are deposited on substrates. While the metals used for the masks are extremely rigid, as the masks get larger they tend to sag which disrupts the deposition process and causes low yields. The industry is currently limited to Gen 6 substrates and processes only a half or a quarter of the sheet at a time to avoid the sagging issue, which increases costs and process time. The idea of a larger (Gen 8+) deposition tool that operated vertically instead of horizontally, would keep gravity from working toward sagging the larger mask.
Given that this development was being done in order to improve the yield of larger OLED displays, rather than the relatively small displays of smartphones, SDC’s goal is to satisfy the requirements of customers for OLED IT products while being able to remain profitable while dominating the space. SDC is not doing such work only for itself, but with the potential for garnering what most believe will be Apple’s further dive into OLED displays for additional products, with those being of larger sizes. If they are able to produce those panels using a Gen 8+ deposition system, without the mask issues mentioned above, they will lead the industry and expand their domination of the OLED display space.
That said, this is new technology that is unproven in mass production, and while we expect SDC has spent time and money on the project, given it potential for repeat tool sales if successful, Ulvac has probably taken much of the financial risk, However there seems to be some talk that Samsung Display has decided not to go with the Ulvac vertical system and has chosen a horizontal Gen 8+ deposition system from Canon-Tokki (7751.JP), the leading supplier of OLED deposition tools worldwide. The Canon tool is said to be half-cut, meaning the Gen 8+ substrate is processed in two pieces, but little has been said about how the system would combat the ‘sagging mask syndrome’. Further, the cost of the Canon tool is said to be 33% more expensive than the Ulvac tool, making such a potential decision even more unusual. It seems that Apple was involved with the decision, opting for Canon’s experience in mass production OLED deposition over the untested Ulvac tool, and at least according to some sources, is choosing the Canon tool on Apple’s request.
While there has been no verification of any decision by SDC, if the company is privy to Apple’s timeline for adding more OLED displays to its IT product line, a decision needs to be made soon, as such equipment is complex, tends to be customized by the customer, and in this case, has yet to be used in a mass production setting. We would expect the lead time for such a tool to be between 9 and 12 months, during which Samsung Display would be refitting an exiting LCD fab to accommodate this new OLED line. If such an order were placed today, we would expect product to begin to be available in mid-2024 and real volume production by the end of 3Q in that year. That said, until SDC, Ulvac, Canon or a sub-vendor confirms the order, it remains speculation.
Given that this development was being done in order to improve the yield of larger OLED displays, rather than the relatively small displays of smartphones, SDC’s goal is to satisfy the requirements of customers for OLED IT products while being able to remain profitable while dominating the space. SDC is not doing such work only for itself, but with the potential for garnering what most believe will be Apple’s further dive into OLED displays for additional products, with those being of larger sizes. If they are able to produce those panels using a Gen 8+ deposition system, without the mask issues mentioned above, they will lead the industry and expand their domination of the OLED display space.
That said, this is new technology that is unproven in mass production, and while we expect SDC has spent time and money on the project, given it potential for repeat tool sales if successful, Ulvac has probably taken much of the financial risk, However there seems to be some talk that Samsung Display has decided not to go with the Ulvac vertical system and has chosen a horizontal Gen 8+ deposition system from Canon-Tokki (7751.JP), the leading supplier of OLED deposition tools worldwide. The Canon tool is said to be half-cut, meaning the Gen 8+ substrate is processed in two pieces, but little has been said about how the system would combat the ‘sagging mask syndrome’. Further, the cost of the Canon tool is said to be 33% more expensive than the Ulvac tool, making such a potential decision even more unusual. It seems that Apple was involved with the decision, opting for Canon’s experience in mass production OLED deposition over the untested Ulvac tool, and at least according to some sources, is choosing the Canon tool on Apple’s request.
While there has been no verification of any decision by SDC, if the company is privy to Apple’s timeline for adding more OLED displays to its IT product line, a decision needs to be made soon, as such equipment is complex, tends to be customized by the customer, and in this case, has yet to be used in a mass production setting. We would expect the lead time for such a tool to be between 9 and 12 months, during which Samsung Display would be refitting an exiting LCD fab to accommodate this new OLED line. If such an order were placed today, we would expect product to begin to be available in mid-2024 and real volume production by the end of 3Q in that year. That said, until SDC, Ulvac, Canon or a sub-vendor confirms the order, it remains speculation.
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