Samsung Display, the world’s largest OLED panel maker, is investing billions of dollars to improve the efficiency of its OLED production in anticipation of increased orders from Apple.
The South Korean company is investing around $3.05 billion to set up new OLED production lines at its Tangjeong factory, which will become the world’s first to start mass-producing 8.6-generation OLED substrates measuring 2,620 x 2,200mm each. These substrates will then be converted into mid-sized OLED panels for laptops and tablets, with Samsung Display planning to manufacture around 10 million OLED panels every year.
Samsung aims to double production efficiency with 8.6-generation OLED substrates
Samsung Display’s move to upgrade from sixth-generation glass substrates to 8.6-generation substrates will double its production efficiency and increase production capacity. However, it is a more complex process that could compel Japanese production equipment firms to improve their technology. LG Display is also investing $2.46 billion to improve its OLED production facilities and is expected to adopt sixth-generation substrates in the future.
Both Samsung Display and LG Display are competing to secure OLED manufacturing contracts from Apple, which is expected to launch its first OLED iPad in 2024 and its first OLED MacBook Pro in 2026. The two South Korean companies are also competing to keep Chinese display manufacturing firms out of the OLED market.
Chinese firms have already captured most of the LCD market and are expanding their OLED production capacity with subsidies from the Chinese government. As a result, it is crucial for LG and Samsung to hold on to their combined 80% market share to survive.
In other news, Samsung plans to cut memory chip production by 25% as their Q1 2023 profits fall by 95% due to weak chip demand. The company has also confirmed that their Exynos chipsets may return in Galaxy flagship smartphones, and rumors have been circulating that Samsung may launch the Galaxy Z Fold 5 and Galaxy Z Flip 5 earlier than expected.
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