As South Korea's Samsung Display is poised to build up its organic light-emitting diode (OLED) panel production plant, manufacturers of OLED production equipment are feeling the warmth of spring.
According to industry insiders, Samsung Display will expand its 6th-generation A3 production line in Asan to make it capable of churning out 30,000 OLED panels a month. Some even predict that Samsung Display will invest a total of 6 trillion won within this year.
In 2011, Samsung Display started to invest heavily in 5.5th-generation small- and medium-sized production lines, improving the OLED industry’s prospects. While Samsung Display focused on small OLED panels for smartphones, LG Display had set its sights on the OLED TV market from the beginning.
“In 2013, there were high expectations for massive investment in OLED production lines. However, those expectations had not materialized. Since the fourth quarter of last year, investment activity has resumed,” said Kim Kyung-min, researcher at Daishin Securities.
“Overall, business conditions have appreciably improved, so this investment boom will not cool down for the time being,” he added.
According to researcher Kim, demand for OLED panels from the downstream industry (e.g. TV set makers) has risen. In other words, there has been an improvement in the mass production of OLED panels for TVs. “There is a growing possibility of more Apple products being equipped with Korean OLED panels,” he mentioned. As a matter of fact, some say that Samsung Display’s decision to invest in new OLED panel production lines may stem from its growing business with Apple.
In addition, the OLED industry is thought to have successfully restructured itself for the past five years.
“Korean manufacturers of display panels have more wherewithal for facility investment. Having witnessed sluggish demand in the domestic market, Koreans suppliers of equipment made inroads into China and struck deals with Chinese corporate customers. They have finished restructuring and limbering up for the game. Now is the time to charge ahead,” Kim said.
