Samsung Display to Add OLED Capacity
In a not-so-surprising move, Samsung Display (pvt) has begun the process of building out additional small panel OLED capacity with a new line that will become part of the A3 and A4 lines that are the mainstay of the company’s OLED mobile display production lines. The new Gen 6 lines are expected to be built in the former L7-2 fab, a former LCD production line in Asan that SDC closed last year. These new lines, which will be built out in two phases, will add to capacity provided by A4 and A4-1, with A4-1 being another line that was built in the shell of the former L7-1 LCD line. The reason for the new fab is to supplement the production of small panel LTPS OLED displays (and some LTPO), which SDC had been producing on the A3 and A4 lines, however when those lines were updated to LTPO backplanes, those used by Apple, the production capacity was reduced. When the new lines are completed, SDC’s combined A3 and A4 capacity is expected to be 165,000 sheets/month.
The first line (15K) is expect to see equipment move in next year, which puts our production start in 3Q ‘2022. The 2nd phase is estimated to start ~ one year later. SDC is expected to spend ~$850m on equipment for the first line, which will also use some of the tools removed from the upgraded A4 lines, but as LTPO tools are more expensive than those for LTPS, the cost of the fab will likely be higher than a typical LTPS Gen 6 line. SDC is pushing to capture as much of Apple’s iPhone business as possible, despite competition from LG Display (LPL) and BOE (200725.CH), and with the expectation that Apple will increase the number of iPhone models using LTPO next year, SDC must be able to guarantee Apple that it has the capacity to be the dominant supplier of LTPO OLED displays going forward.
The first line (15K) is expect to see equipment move in next year, which puts our production start in 3Q ‘2022. The 2nd phase is estimated to start ~ one year later. SDC is expected to spend ~$850m on equipment for the first line, which will also use some of the tools removed from the upgraded A4 lines, but as LTPO tools are more expensive than those for LTPS, the cost of the fab will likely be higher than a typical LTPS Gen 6 line. SDC is pushing to capture as much of Apple’s iPhone business as possible, despite competition from LG Display (LPL) and BOE (200725.CH), and with the expectation that Apple will increase the number of iPhone models using LTPO next year, SDC must be able to guarantee Apple that it has the capacity to be the dominant supplier of LTPO OLED displays going forward.
RSS Feed