Money Can’t Buy You Happiness…
In recent days we have mentioned FMMs (Fine Metal Masks) those screen-like components in the OLED material deposition process that allow those materials to be precisely placed in RGB OLED displays. As noted, there are limitations as to the size of such masks, which limits their use to OLED production in fabs that are Gen 6 or smaller with Samsung Display (pvt) trying to find a way around that limitation so it might enter the OLED TV business with an RGB OLED TV. In the interim, the RGB OLED industry continues to expand, new deposition tools are purchased and put into operation, which increases the need for FMMs, which are not only expensive, but need to be replaced regularly.
The FMM situation is made worse by the fact that there is really only one major supplier of such masks, Dai Nippon Printing (7912.JP), which holds an incredible share of the market at over 90% Another Japanese firm Toppan Printing (7911.JP) also produces such makes, as do an number of smaller firms, but none even close to the scale of DNP. Samsung Display, the leader in the small panel RGB OLED business, has a long standing agreement with both companies that guarantee’s it much of their supply, leaving others to work on allocation or find multiple smaller suppliers that tend to have inconsistent product or scheduling. A recent study of the FMM market has indicate that there is a 31% gap between supply and demand this year as OLED RGB expansion projects continue, especially in China, and supply is strictly limited.
China has not taken the situation lightly as it impinges on both its goal of self-sufficiency and could limit its ability to compete with other OLED producers, particularly Samsung Display. There are at least seven projects in China that are developing technology and process for mass production of FMMs, but even with over $500m spent toward that end, the most advanced is still in the product sample stage, which we expect will lead to both additional technology refinements and scalability issues, which leaves the industry in the same place it was last year and this year. The same industry evaluation predicts that it will not be until 2025 until FMM supply and demand are close to being in balance, and that is if everything goes according to plan. Until then, Chinese RGB OLED panel producers will have to line up behind SDC and keep those FMM cleaners running 24/7.
The FMM situation is made worse by the fact that there is really only one major supplier of such masks, Dai Nippon Printing (7912.JP), which holds an incredible share of the market at over 90% Another Japanese firm Toppan Printing (7911.JP) also produces such makes, as do an number of smaller firms, but none even close to the scale of DNP. Samsung Display, the leader in the small panel RGB OLED business, has a long standing agreement with both companies that guarantee’s it much of their supply, leaving others to work on allocation or find multiple smaller suppliers that tend to have inconsistent product or scheduling. A recent study of the FMM market has indicate that there is a 31% gap between supply and demand this year as OLED RGB expansion projects continue, especially in China, and supply is strictly limited.
China has not taken the situation lightly as it impinges on both its goal of self-sufficiency and could limit its ability to compete with other OLED producers, particularly Samsung Display. There are at least seven projects in China that are developing technology and process for mass production of FMMs, but even with over $500m spent toward that end, the most advanced is still in the product sample stage, which we expect will lead to both additional technology refinements and scalability issues, which leaves the industry in the same place it was last year and this year. The same industry evaluation predicts that it will not be until 2025 until FMM supply and demand are close to being in balance, and that is if everything goes according to plan. Until then, Chinese RGB OLED panel producers will have to line up behind SDC and keep those FMM cleaners running 24/7.
Gen 6 FMM - Source: Chen-Lin Technology
Fine Metal Mask Cleaning Tool - Source: Hitinc
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