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SiliconWorks Projects Earning Surprises by OLED TV and 5G Smartphone Growth
 
Shinhan Investment Corp. (Shinhan) projected the Silicon Works 2021 earnings/share of$56.91 (KRW 65,000) from $54.84 (KRW 63,0000) due to projected OLED smartphone and TV panel growth
 
Global market research firm SA forecasts that the demand for 5G smartphones in 2021 will increase by 44.4% year-on-year to 670 million units. During the same period, in 2021, Apple's 5G smartphone demand is expected to grow 256.5% to 179 million units. Researcher Chanwoo Kim said, “The surge in demand for 5G smartphones leads to a surge in demand for OLED panels. The demand for OLED panels for smartphones in 2021 is 750 million units, up 46.2% from 510 million units in 2020.” Researcher Kim analyzed said, “… OLED TV panel production in 2021 will increase 67.1% Y/Y to 8.66 million units. As the demand for 48-inch OLED TVs increases, production will increase due to product production mix adjustments, leading to increased sales of driver chips.” He forecasted SiliconWorks 2021 sales and operating profit will increase 17.2% and 26.6% Y/Y to 1.2131 trillion won and 109.1 billion won, respectively. This year's sales are expected to be up 19.3% Y/Y to KRW 1,348 trillion, and operating profits 82.3% to KRW 86.2 billion.