QD/OLED
Earlier this month we indicated that Samsung Display (pvt) would likely be making a decision next month as to whether it would stick with QD/OLED technology or do more R&D on nano-rods, a substitute for the OLED portion of the new process. It seems that SDC will be producing prototype QD/OLED panels for both TV and monitors in June, for testing by parent Samsung Electronics (005930.KS), Sony (SNE) and other potential set brands in China. Based on a response after 90 to 120 days of testing, SDC will decide whether to put its Q1 fab into mass production. SDC has already sent prototypes to Samsung Electronics, but those were open cell panels rather than the modules needed to produce a TV set.
Samsung Electronics had previously indicated that they did not intend to produce an OLED based TV product, which was a devastating blow to SDC, who was, at the time, planning to shutter or sell all large panel LCD production capacity at the end of last year. Since then, SDC has reconsidered its plans as LCD large panel pricing increased markedly, and parent Samsung Electronics has warmed to the idea of using the new QD/OLED technology for a potential TV set product. That increasing acceptance of the QD/OLED technology does come with some considerations, particularly increasing production capacity by improving yield, which is typically quite low during the early months (or even years) of producing a new display technology.
If Samsung commits to the technology SDC will have to not only increase its yield at its existing fab, but will likely have to commit to and build out another line, as the current fab, even at 100% utilization, would likely be capable of producing just over 1m units/year (65”), and realistically far less. Such a commitment would entail considerable financial risk for SDC if the technology does not prove competitive with large panel OLED or mini-LED TVs in the future. Further in order to make the 2022 TV season, such capacity would have to be in service in under 15 months, a daunting task, especially coupled with other improvements required by Samsung, such as an increase in luminance over earlier prototypes in order to compete with Samsung’s mini-LED quantum dot TV line.
Samsung Electronics had previously indicated that they did not intend to produce an OLED based TV product, which was a devastating blow to SDC, who was, at the time, planning to shutter or sell all large panel LCD production capacity at the end of last year. Since then, SDC has reconsidered its plans as LCD large panel pricing increased markedly, and parent Samsung Electronics has warmed to the idea of using the new QD/OLED technology for a potential TV set product. That increasing acceptance of the QD/OLED technology does come with some considerations, particularly increasing production capacity by improving yield, which is typically quite low during the early months (or even years) of producing a new display technology.
If Samsung commits to the technology SDC will have to not only increase its yield at its existing fab, but will likely have to commit to and build out another line, as the current fab, even at 100% utilization, would likely be capable of producing just over 1m units/year (65”), and realistically far less. Such a commitment would entail considerable financial risk for SDC if the technology does not prove competitive with large panel OLED or mini-LED TVs in the future. Further in order to make the 2022 TV season, such capacity would have to be in service in under 15 months, a daunting task, especially coupled with other improvements required by Samsung, such as an increase in luminance over earlier prototypes in order to compete with Samsung’s mini-LED quantum dot TV line.
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