Speaking of OLED materials…
Recent data concerning the sales of OLED materials in 2Q indicated that the industry saw a sales decline of 2.1% from the previous quarter although up 7.8% y/y. According to UBI, a local Korean Research firm, the three largest small panel OLED producers saw declines in OLED material purchases in 2@, while OLED material for large panel displays remained roughly flat. In order to validate that data we matched those changes to small panel OLED shipments in our database in the following table:
According to UBI LG Display’s OLED material purchases for OLED TV production remained flat q/q in 2Q while Samsung Display’s large panel material purchases were up slightly, although considerably below those of LGD’s considering Samsung Display has limited large panel capacity for its QD/OLED displays. We note that while sales of OLED materials at Universal Display represent only emitter materials, material sales in 2Q at UDC declined by 9.2%, although shipments to Korea (Samsung and LG) declined by 11.8% and to Customer A & Customer B, assumed to be Samsung and LG, declined by 9.2%, while BOE (Customer C) saw a decline of 6.7% q/q. Note also that units shipped in the table above include small panel shipments only while material purchase ROC is for both small and large panel OLED displays.
While there are a number of factors, particularly material inventory levels, that would affect OLED material purchases, the overall impact of what was a progressively more difficult quarter for the overall display space, was less so for the OLED display segment, and while we expect that the 3rd quarter will continue the weakness already seen in July for the LCD space, we expect the impact will again be less for OLED producers, especially in light of the build toward the release of the iPhone 14 series. If you have to be producing materials for the display space, OLED is still the place to be, at least so far.
While there are a number of factors, particularly material inventory levels, that would affect OLED material purchases, the overall impact of what was a progressively more difficult quarter for the overall display space, was less so for the OLED display segment, and while we expect that the 3rd quarter will continue the weakness already seen in July for the LCD space, we expect the impact will again be less for OLED producers, especially in light of the build toward the release of the iPhone 14 series. If you have to be producing materials for the display space, OLED is still the place to be, at least so far.
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