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Korean Press Report a 6 month delay in QD-OLED Production Plans
January 10, 2020
Samsung Display’s plant and equipment investment in QD-OLED will be postponed until next year as periodic personnel change and reorganization continue to be delayed according to Etnews. Samsung Display will start sending out POs (Purchase Order) next year when it was planning to start in the middle of this January. Samsung Display is taking a very careful approach towards the investment. Samsung typically will provide a Letter of Intent (LOI) before issuing a PO so that a seller can prepare necessary for the required due date. Etnews claims to have received reports from toolmakers that they are waiting for POs given that verbal notification but no LOI has been provided. “We were only told that Samsung Display would send out POs soon, but the specific schedule and size of the investment were not confirmed.” said one toolmaker. “Although we predicted that Samsung Display would carry out its investment by end of this year, it seems most likely that the investment will take place next year.” Canon Tokki has not received a LOI from Samsung Display.” said a different representative. “We have no choice but to wait until Samsung Group finalizes their personnel changes.” Samsung will convert part of L8 Line, which is producing 8th Gen LCD, into a QD-OLED pilot line that can produce 30,000 sheets per month. Samsung staff at CES the mass production schedule has not changed and remains the first half of 2021. Samsung Display should gradually increase the output of QD-OLEDs by converting L8-1-2 and L8-2-1 lines once the QD display technology production are stabilized. Samsung Display will use Applied Material’s CVD equipment after it initially decided to use WONIK IPS’ CVD system. SDC executives recently visited Applied Materials’ headquarters and discussed their Applied Material’s CVD systems. Initially, Samsung Display had been working with WONIK IPS to separate the supply network of CVD systems for TFE. SDC to replace Applied with WONIK IPS, which is one of Samsung Display’s key partners. The company had participated in R&D process of QD OLED Display and focused on developing a system that can replace Applied Materials’ systems. Samsung Display tested the performance and quality of WONIK IPS’ system during the second-half of this year and it expected to use the WONIK IPS’ system for its production lines. SDC wants to minimize its reliance on single suppliers of key equipment and systems as Japanese Government’s trade restrictions have become a major issue for South Korean companies. However, SDC recently commented “that because Applied Materials has been the CVD system supplier for Samsung Display for WONIK IPS’ system’s performance did not meet the performance that Samsung Display was looking for as this is the first time WONIK IPS is working on CVD system, and Samsung Display has had no choice but use Applied Materials equipment” “Although Samsung Display has not started placing POs (Purchase Order), an ordering body usually tells a supplier its intent to purchase products verbally ahead of time.” said a different representative for the industry. “Applied Materials already received Samsung Display’s intent to purchase its systems while WONIK IPS is discussing with Samsung Display about supplying its CVD system one last time.” From: Staff Reporter Bae, Okjin | [email protected]
January 10, 2020
Samsung Display’s plant and equipment investment in QD-OLED will be postponed until next year as periodic personnel change and reorganization continue to be delayed according to Etnews. Samsung Display will start sending out POs (Purchase Order) next year when it was planning to start in the middle of this January. Samsung Display is taking a very careful approach towards the investment. Samsung typically will provide a Letter of Intent (LOI) before issuing a PO so that a seller can prepare necessary for the required due date. Etnews claims to have received reports from toolmakers that they are waiting for POs given that verbal notification but no LOI has been provided. “We were only told that Samsung Display would send out POs soon, but the specific schedule and size of the investment were not confirmed.” said one toolmaker. “Although we predicted that Samsung Display would carry out its investment by end of this year, it seems most likely that the investment will take place next year.” Canon Tokki has not received a LOI from Samsung Display.” said a different representative. “We have no choice but to wait until Samsung Group finalizes their personnel changes.” Samsung will convert part of L8 Line, which is producing 8th Gen LCD, into a QD-OLED pilot line that can produce 30,000 sheets per month. Samsung staff at CES the mass production schedule has not changed and remains the first half of 2021. Samsung Display should gradually increase the output of QD-OLEDs by converting L8-1-2 and L8-2-1 lines once the QD display technology production are stabilized. Samsung Display will use Applied Material’s CVD equipment after it initially decided to use WONIK IPS’ CVD system. SDC executives recently visited Applied Materials’ headquarters and discussed their Applied Material’s CVD systems. Initially, Samsung Display had been working with WONIK IPS to separate the supply network of CVD systems for TFE. SDC to replace Applied with WONIK IPS, which is one of Samsung Display’s key partners. The company had participated in R&D process of QD OLED Display and focused on developing a system that can replace Applied Materials’ systems. Samsung Display tested the performance and quality of WONIK IPS’ system during the second-half of this year and it expected to use the WONIK IPS’ system for its production lines. SDC wants to minimize its reliance on single suppliers of key equipment and systems as Japanese Government’s trade restrictions have become a major issue for South Korean companies. However, SDC recently commented “that because Applied Materials has been the CVD system supplier for Samsung Display for WONIK IPS’ system’s performance did not meet the performance that Samsung Display was looking for as this is the first time WONIK IPS is working on CVD system, and Samsung Display has had no choice but use Applied Materials equipment” “Although Samsung Display has not started placing POs (Purchase Order), an ordering body usually tells a supplier its intent to purchase products verbally ahead of time.” said a different representative for the industry. “Applied Materials already received Samsung Display’s intent to purchase its systems while WONIK IPS is discussing with Samsung Display about supplying its CVD system one last time.” From: Staff Reporter Bae, Okjin | [email protected]
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