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Display Capex to Average $13b from 2019 to 2022 down 40% from Prior 2 Years
September 17, 2018 DSCC released their Q318, Quarterly Display Capex and Equipment Servicereport, in which they showed 2016-2018 spending averaging $22 billion per year, and 2019-2021 spending dropping to an average of $13 billion per year due to the anticipated excess in both smartphones and TV capacity. They report that capex peaked in 2017 and could drop to as low as $9.8b in 2021. The forecast is somewhat different then the public statement made by Applied Materials CEO, who forecasted a drop in 2018, but a pick up in 2019. Over the period from 2019-2022, China represents 82% of the capex, Korea 16% and Japan 2%. Figure 1: Display Capex by Country Source: DSCC, OLED-A
Despite the reduction in OLED capex, the cancelling of Samsung’s gigantic A5 Gen 6 fab, and the growth in Gen 10.5 LCD fabs, OLED capex still exceeds LCDs by 38% from 2018 to 2022; 42.4b to 30.8b, respectively Figure 2: Display Capex by Technology Source: DSCC, OLED-A
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