Speaking of Samsung Display…
Reports from Korea indicate that Samsung Display is on schedule to bring up production at its A4-2 Gen 6 OLED line in 3Q of this year, in line with our timeline, as equipment deliveries began in 1Q of this year. This line replaces SDC’s L7-2 LCD production line that it closed in 3Q last year. We note that the fab has additional production space and could expand further if needed. We expect the line will be producing LTPS displays, rather than the LTPO displays that are used by Apple (AAPL) and other smartphone brands, as the conversion of other lines to LTPO has limited SDC’s production capabilities for the more standard LTPS OLED panel production. SDC’s objective is to bring small panel OLED production to 180,000 sheets/month, which would imply at least another line at A4-2, and give them the capability for ~650m smartphone units at 100% yield and full utilization. SDC is also considering building a new fab for OLED IT displays, which could be either a Gen 6 or Gen 8.5 fab, but that decision has yet to be made.
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