OLED production - Page 32

According to ETNews, Samsung aims to expand the adoption of its Y-OCTA touch technology which will be used in both versions of its Galaxy S9 (5.77" and 7.22"). In the Galaxy S8, only the 5.77" version uses Y-OCTA, the larger variant uses Samsung's film-type touch.

Y-OCTA (which apparently stands for Youm On-Cell Touch AMOLED) describes Samsung's On-Cell flexible (hence Youm) AMOLED touch technology. The touch sensor in Y-OCTA displays is deposited directly on the encapsulation (TFE) layer which is better than the add-on (or film-type) touch used in older flexible AMOLEDs generations. The optical features are better as the touch layer is below a polarizer and enables the use of a non-ITO grid, there's no need for a support film (see image above) and the number of layers is lower. Samsung estimates that Y-OCTA also cuts production costs by around 30%.

Business Korea reports that LG Display is in talks with Google regarding a large investment in LGD's OLED facilities towards the development and production of VR displays. BK says the investment will amount of hundreds of billions of Won (equivalent to hundreds of millions USD).

The report is somewhat confusing, though. On the one had it says that Google is interested in OLED microdisplays, and on the other it says that LG will produce the displays in its existing flexible AMOLED lines, which use a different technology than microdisplays (which are produced on Silicon).

The Korea Economic Daily reports that Apple has signed a deal with LG Display to secure flexible OLED capacity. Apple will pay $2.7 billion to LG Display in order to secure 45,000 monthly substrates in LGD's upcoming 6-Gen production facility, starting in 2019.

The newspaper says that the two firms agreed to keep this deal confidential as Apple also partnered with Samsung Display for the supply of OLED capacity. Apple was always assumed to want a second OLED supplier, and earlier this week LGD confirmed it is seeking financial help from strategic partners as it embarks on an aggressive OLED expansion plan.

Samsung Electronics reported a record-breaking quarter, with revenues reaching 61 trillion Won ($54 billion USD) and an operating profit of 14 trillion Won (about $12.6 billion USD). The company's enjoyed a very strong chip and component business, which offset a slight decline in mobile devices revenues.

Samsung Display posted an operating profit of 1.7 trillion Won ($1.5 billion) from revenues of 7.7 trillion Won ($6.8 billion). SDC's OLED business is strong and the company forecasts increased sales of flexible AMOLED displays as more smartphone makers are adopting flexible OLEDs.

Truly Semiconductors signed an agreement with the Meishan City government (in Sichuan, China) to establish a joint-venture to construct a 6-Gen AMOLED line. The fab will be mostly used to produce small-sized AMOLED smartphone displays. In addition to the AMOLED line, Truly's new plant will also host a new 5-Gen TFT LCD production line.

Truly estimates that the project will cost a total of 40.4 billion Yuan (almost $6 billion USD). Construction of the AMOLED fab will begin in October 2018, and production is expected to begin in 2021. The cost of the AMOLED fab (which is the second stage in this project, the LCD line will come first) will total $4.1 billion USD. The AMOLED line will use 6-Gen substrates (1500x1850 mm) and will have a monthly capacity of 30,000 substrates (equivalent to over 52 million 5" panels annually).

DSCC expects the OLED market to rapidly grow in the near future, as AMOLED production capacity will increase at a CAGR of 41% from 2016 (5.3 million square meters) to 2021 (29.4 million square meters). OLED revenues will reach $21 billion in 2017 (a rise of 46% compared to 2016) and will reach $46 billion in 2021.

Smartphones are still the largest OLED application by far - with a 86% market share (revenues) in 2017 and 81% in 2021. The second largest application by revenues are OLED TVs, and other applications follow with a small market share - but one that will increase as supply looses in the future. If we look at shipments, then smartphones acount for 94% of OLED shipments, and the 2nd and 3rd applications are VR headsets and smart watches. OLED TV shipments will reach 6.5 million in 2021 (rising at a CAGR of 49% from 2016 to 2021).

LG Display announced its results for Q2 107 - revenues increased 13% from 2016 to KRW6.63 trillion (around $6 billion USD) and net income reached KRW737 billion ($660 million USD). TV panels accounted for 46% of LGD's revenues, mobile devices 22% and desktop monitors and tablets and notebook displays accounted for the rest.

In addition to the earning results, LGD detailed its investment path for OLEDs, as was decided in a recent board meeting. First of all, LGD decided to build a 10.5-Gen (2940x3370 mm) OLED line in its upcoming P10 fab in Paju. LGD will make an up-front investment of KRW2.8 trillion ($2.5 billion USD). The whole fab will require more investments but LGD says it is taking a prudent approach - it will only begin mass production of OLED TVs after stabilizing the technology for these extra large size substrates.

According to Taiwan's Digitimes, LG Display is facing delays in flexible OLED production at its $900 million E5 line in Gumi that should have started producing panels last month, but now it is expected to start mass production in August.

In April 2017 it was reported that LG Display has secured a 5.5" flexible OLED supply deal to China-based Xiaomi, for the company's next-gen flagship phone. According to Digitimes, however, LGD now lost this supply deal and Xiaomi has ordered over 3 million flexible OLEDs (6" QHD ones) from Samsung, who will supply the displays in December 2017 and January 2018. Xiaomi will have to delay the launch of its flagship phone to early 2018.

Following LGD's recent demonstration of a 77" flexible and transparent OLED display, the company has now decided (according to Business Korea, anyway) to start producing rollable large-area (55 to 75 inch) OLED TVs in 2020.

LGD will produce these rollable TVs in its upcoming P10 OLED fab in Paju. The P10 is LGD's most ambitious OLED fab - with a price tag of over $8 billion, it is expected to commence production in 2018, although it will take some time before mass production begins. The P10 will exclusively be used to produce OLEDs - both OLED TV panels (9-Gen or 10-Gen substrates, it seems LG did not decide yet) and small/medium flexible OLEDs.

The Korea Herald reports that Apple is in talks with LG Display to invest 2-3 trillion Won ($1.7-$2.6 billion USD) in LG's OLED production lines, in order to exclusively reserve some of LG's flexible OLED capacity.

The report says that the two firms already agreed on these investment plans, but the details (which includes the investment size and timing) have not been finalized yet. A couple of month ago we heard reports (originating from another Korean news outlet, Business Korea) that LGD is in talks with Apple.