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Musing-Weekly Newsletter

VTE Equipment in Short Supply
July 10, 2017

Canon-Tokki has supplied, and likely will continue to supply SDC with all of its Gen 6 deposition tools, which includes a portion of fab A2, all of fab A3, and the upcoming A4, A5 and L7-1 conversions. Canon-Tokki has recently increased it tool capacity from ~7 tools (2017) to 12 tools (2018) to meet the significant demand from Samsung Display and others.  Canon’s deposition tool output will be allocated to Samsung Display, LG Display, BOE and possibly Sharp.
 
Last year LG Display, the largest producer of LCD displays, was unable to secure a Canon deposition tool because of previous tool orders and went with Sunic Systems as an alternative.  Canon-Tokki is the only current supplier of Gen 6 tools that can work on half of the substrate at one time, with competitors able to work on ¼ of the substrate, a less efficient process.  Sunic, Applied Materials, SFA ULVAC SNU and AP Systems are vying for orders from new OLED fab participants and the list changes quickly on occasion as negotiations move a supplier to a lead position at the last minute.  These tools can cost upwards of $100m when fully configured, among the largest single tool purchases made for a new OLED fab, and while we are sure of most on the list, some remain tentative to date as they could be for tools other than those for deposition.
 
Table 1: Deposition Tool Vendor List
Picture
Source: SCMR LLC, Company Data, ofweek, OLED-A
Source: SCMR LLC, Company Data, ofweek, OLED-A
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