Charm sells equipment to Samsung Display
Korea based Charm Engineering (009310.KS) will sell $8.8m worth of equipment to Samsung Display through mid-April. Charm sells a number of LCD and OLED related tools, particularly display array testing and repair tools, and similar repair tools for PCBs. Given the capacity expansion that Samsung Display has underway in the OLED space, with both the A3 and the L7 lines being expanded or rebuilt for OLED, we assume the tools will be used for OLED production.
We believe Charm has a significant share of Samsung Display’s array test and repair business, as market share leader Orbotech (ORBK), who supplies similar tools to almost all other OLED and LCD producers has only a modest relationship with Samsung Display after a 2012 incident where a number of Korean based ORBK employees were accused of stealing OLED technology secrets from Samsung when on premises to test company tools. Orbotech bore no responsibility for the incident and was fully cleared, but the relationship remains minimal.
We believe Charm has a significant share of Samsung Display’s array test and repair business, as market share leader Orbotech (ORBK), who supplies similar tools to almost all other OLED and LCD producers has only a modest relationship with Samsung Display after a 2012 incident where a number of Korean based ORBK employees were accused of stealing OLED technology secrets from Samsung when on premises to test company tools. Orbotech bore no responsibility for the incident and was fully cleared, but the relationship remains minimal.
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