The Samsung Galaxy Fold’s launch that was carried at the beginning of this year was marred with controversy as the display of its review units started malfunctioning. This resulted in Samsung having to delay the launch until September 2019, six months after the formal announcement. The Galaxy Fold has recorded impressive sales figures ever since and even went out-of-stock in a few markets. Samsung has now signed an exclusive deal with Korean supplier Dowoo Insis for Ultra-Thin Glass (UTG) panels that will be used on next-generation foldable displays.
The Samsung Galaxy Fold has an integrated polyamide film over its flexible display panel, which resembles a screen protection film. If a person tries to remove this film, they accidentally end up damaging the display. After the marketing nightmare post the media launch back in May 2019, Samsung tucked the edges of the film underneath the Fold’s frame so that people would not rip off the display.
Another major reason for seeking an alternative to the polyamide film is the trade restrictions imposed by Japan on exporting goods to South Korea since August 2019. The film used by Samsung on the Galaxy Fold was supplied by Japanese firm Sumitomo.
The UTG supplied by Dowoo is said to be thinner than 100 microns, with certain speculations putting the figure close to 30 microns, which is half the thickness of the human hair. UTG is an ultra-thin tempered glass that can fold without breaking and is more scratch-resistant than the polyamide film used on the Galaxy Fold. Dowoo’s current manufacturing capacity stands at 500,000 units. Samsung Venture has invested approximately KRW 12 billion as part of the deal.
The contract is apparently mid to long term, with Samsung planning to invest even more in the coming days to increase Dowoo’s manufacturing capacity in South Korea and build new units in Vietnam. According to Samsung’s projection, the company is aiming to sell between five and six million foldable smartphones by 2020. Dowoo needs to match its production capacity to meet demands. If the foldable smartphone market picks up the pace as per Samsung’s estimate, Dowoo needs to supply a lot more UTG panels in the coming years. At least Samsung will not have to worry about rival companies poaching Dowoo’s UTG panels as the exclusive deal makes Samsung the sole owner of every panel manufactured by Dowoo Insis.
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