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Samsung and LG to Add OLED Capacity for Smartphones, TVs, and IT
Samsung Display and LG Display are expected to making minor expansions of their OLED production capacities in the second half of the year, according to multiple sources working at South Korean equipment makers. There are expectations that the pair may start investing more on OLED panels from increased use of the panels in a variety of sectors and new customers, but market conditions remain uncertain, which means they will likely spend conservatively, the sources said.
These reports corroborate our previous statements that Samsung Display will start spending to convert its L7-2 liquid crystal display (LCD) line into a OLED fab for smartphone panels. The company is also considering a fab for OLED panels for IT applications. LG Display is studying whether to invest in an IT OLED line and a Gen 10.5 (2940x3370mm) OLED line
Samsung Display is planning to remove all LCD related equipment from L7-2 by next month. The line will be converted to a Gen 6 (1500x1850mm) flexible OLED line. It will be expanding the OLED line in two stages. The first in the second half of this year will add 15,000 substrates per month in capacity. Another 15,000 substrates per month will be added in the first half of 2022. The line will produce LTPS TFT substrates, because the company is using LTPS TFT equipment for 30,000 substrates/month left over from its A3 line, which has been converted to produce low-temperature polycrystalline oxide (LTPO) TFT OLED. The conversion of L7-2 will allow Samsung Display its product rate for LTPS TFT OLED. At A3, the LTPO TFT OLEDs are being made for Galaxy and iPhones.
For IT OLED panels, Samsung Display is considering converting its L8-1-2 LCD line, or using its A5 line, which has halted production temporarily as of now. Samsung Display has been developing the equipment needed IT OLED with a partner. It is waiting to place orders for them. If Samsung Display decides to give the go-ahead for the IT OLED line, spending will likely start in the first half of 2022.
Samsung Display will not decide on expansion of its QD-OLED capacity until after customer review and the start of production in the fourth quarter. The Q1 line, has a capacity of 30,000 Gen 8.5 (2200x2500mm) per month. Q1 line was previously the L8-1-1 line that was used to manufacture LCD.
LG Display is likely to invest in a new IT OLED line first before a new Gen 10.5 line. The IT OLED line will manufacture OLED panels for Apple, which is planning to launch an iPad with a OLED panel for the first time next year. Samsung Display will initially be the sole supplier of OLED panels for the tablet. LG Display will start supplying in 2023. LG Display is currently making samples of IT OLED panels. LG Display was also reviewing whether to build a Gen 6 line or a Gen 8.5 line for IT OLED. The capacity of the line will start at 15,000 substrates per month.
If Samsung buys OLED panels from LG Display, LG could build a new Gen 10.5 OLED line in September. LG Display is currently expanding its Gen 8.5 OLED line at Guangzhou, China from 60,000 substrates per month to 90,000 substrates/month. Unless Samsung orders huge quantities, it does not need to build another OLED line for TVs. A new Gen 10.5 OLED line will also likely start with a capacity of 15,000 substrates per month. LG Display is operating two lines at its Paju plant -- the E6-1 and E6-2. E6-3, which it is putting equipment in, will start operations next year. LG Display is expected to ship 50 million OLED panels to Apple this year, so E6-1 and E6-2 is sufficient to handle this.
Samsung Display and LG Display are expected to making minor expansions of their OLED production capacities in the second half of the year, according to multiple sources working at South Korean equipment makers. There are expectations that the pair may start investing more on OLED panels from increased use of the panels in a variety of sectors and new customers, but market conditions remain uncertain, which means they will likely spend conservatively, the sources said.
These reports corroborate our previous statements that Samsung Display will start spending to convert its L7-2 liquid crystal display (LCD) line into a OLED fab for smartphone panels. The company is also considering a fab for OLED panels for IT applications. LG Display is studying whether to invest in an IT OLED line and a Gen 10.5 (2940x3370mm) OLED line
Samsung Display is planning to remove all LCD related equipment from L7-2 by next month. The line will be converted to a Gen 6 (1500x1850mm) flexible OLED line. It will be expanding the OLED line in two stages. The first in the second half of this year will add 15,000 substrates per month in capacity. Another 15,000 substrates per month will be added in the first half of 2022. The line will produce LTPS TFT substrates, because the company is using LTPS TFT equipment for 30,000 substrates/month left over from its A3 line, which has been converted to produce low-temperature polycrystalline oxide (LTPO) TFT OLED. The conversion of L7-2 will allow Samsung Display its product rate for LTPS TFT OLED. At A3, the LTPO TFT OLEDs are being made for Galaxy and iPhones.
For IT OLED panels, Samsung Display is considering converting its L8-1-2 LCD line, or using its A5 line, which has halted production temporarily as of now. Samsung Display has been developing the equipment needed IT OLED with a partner. It is waiting to place orders for them. If Samsung Display decides to give the go-ahead for the IT OLED line, spending will likely start in the first half of 2022.
Samsung Display will not decide on expansion of its QD-OLED capacity until after customer review and the start of production in the fourth quarter. The Q1 line, has a capacity of 30,000 Gen 8.5 (2200x2500mm) per month. Q1 line was previously the L8-1-1 line that was used to manufacture LCD.
LG Display is likely to invest in a new IT OLED line first before a new Gen 10.5 line. The IT OLED line will manufacture OLED panels for Apple, which is planning to launch an iPad with a OLED panel for the first time next year. Samsung Display will initially be the sole supplier of OLED panels for the tablet. LG Display will start supplying in 2023. LG Display is currently making samples of IT OLED panels. LG Display was also reviewing whether to build a Gen 6 line or a Gen 8.5 line for IT OLED. The capacity of the line will start at 15,000 substrates per month.
If Samsung buys OLED panels from LG Display, LG could build a new Gen 10.5 OLED line in September. LG Display is currently expanding its Gen 8.5 OLED line at Guangzhou, China from 60,000 substrates per month to 90,000 substrates/month. Unless Samsung orders huge quantities, it does not need to build another OLED line for TVs. A new Gen 10.5 OLED line will also likely start with a capacity of 15,000 substrates per month. LG Display is operating two lines at its Paju plant -- the E6-1 and E6-2. E6-3, which it is putting equipment in, will start operations next year. LG Display is expected to ship 50 million OLED panels to Apple this year, so E6-1 and E6-2 is sufficient to handle this.
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