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1H21 Fab Utilization Rising, Except For Flexible OLEDs
 
DSCC published fab utilization figures for 2019, 2020 and 1H 2021. In terms of TVs, LCD utilization remained steady between 85% and 90%, but jumped to 92.5% in Q221. 
 
Figure 1: TV Fab Utilization LCD vs. OLED

​The increase is a response to the opportunity to generate additional profits by taking advantage of price increases in large area LCDs. OLED  TV utilization operates in a much different magnitude, since capacity is limited LGD’s 2 facilities in Paju and Guangzhou. LGD kept utilization at the 95% level when it only operated the Paju  Gen 8.5, but utilization varied markedly as they brought up the China facility. In Q221, LGD is back to 95% utilization and that level should continue throughout 2021. The ability to operate at 95% utilization, which means no downtime, is indicative of an undersupply situation.
 
OLED mobile fab utilization has become a function of:

• Apple’s flexible iPhone production, which is heavily weighted to the introduction of new phones in Q3 and Q4
• The low yields of Chinese fabs, which causes low utilization.
• The reduction in rigid panel prices and the recent improvement in Chinese fab yields that has prompted Chinese smartphone  to begin switching from LTPS LCDs to rigid OLEDs in mid-range phones in addition to the increase in OLED tablet and notebook panel demand.

 
As a result, flexible OLED utilization reached the upper 60% in Q320 and Q420 but dropped down to 50% in !h21; rigid OLED utilization has been on a steady climb from 50% in Q220 to 76% in Q221 and LTPS LCDs remain relatively constant at 70% even as their market share drops.

Figure 2: Mobile Fab Utilization LCD vs. OLED