Category Archives: FPDs and TFTs

With BOE, China Star, LG Display and Foxconn expected to build seven new Generation 10.5 factories by 2020, Gen 10 and larger fab flat panel display (FPD) capacity is expected to grow at a compound annual growth rate of 59 percent between 2017 and 2022, according to IHS Markit (Nasdaq: INFO).

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“The majority of all new incremental capacity for producing FPD televisions and other large area applications will be added at Gen 10.5 in the future,” said Charles Annis, senior director at IHS Markit. “The new Gen 10.5 fabs will install 735,000 substrates per month of capacity by the end of 2022. This is enough capacity to produce more than 60 million 65-inch televisions a year.”

Gen 8 and 8.6 fabs that currently account for the bulk of large-area dedicated supply were designed to produce 55- and 58-inch panels respectively, but suffer from inefficiency at bigger sizes. Now with premium televisions rapidly moving to larger sizes as prices fall, FPD makers are racing to build Gen 10.5 factories that are highly optimized for 65- and 75-inch panels.

Gen 10.5 factories, which use enormous 2940 x 3370 mm glass substrates, require high capital outlays to construct. Based on panel makers’ public announcements, total project costs of a Gen 10.5 LCD fab with a monthly capacity of 60,000 substrates will range between $3.4 billion and $6 billion, varying by maker and process to be adopted. To help finance such expensive factories panel makers in most cases are turning to regional governments for support.

Outfitting these fabs is creating unprecedented opportunities for the supply chain that supports them, particularly for equipment makers. According to the Display Supply Demand & Equipment Tracker by IHS Markit, FPD equipment spending will reach a record high of more than $20 billion in 2018, of which new Gen 10.5 factories are a major contributing factor.

As the many new Gen 10.5 factories begin to ramp-up, IHS Markit expects 65-inch and larger panel prices will fall continuously, about 5 percent annually. Subsequently, demand for this high-end segment of the FPD market is forecast to expand 2.5 times to approximately 40 million units in 2022.

“Sixty-five-inch and larger panels are predicted to be one of the fastest growing segments of the FPD market over the next five years. Even so, with so many new Gen 10.5 factories being built, capacity is forecast to surge ahead of demand,” Annis said. “After 2020, smaller than Gen 10 capacity is expected to start to decline as legacy factories are shuttered. The 735,000 substrates per month of Gen 10.5 capacity in the pipeline will not only dramatically increase FPD capacity, but will also shift industry leadership towards to the four companies that are building them.”

See-through electronic devices, such as transparent displays, smart windows and concealed circuits require completely translucent components if users are to digitally interact with their perceived surroundings and manipulate this information in real time. Now, KAUST researchers have devised a strategy that helps to integrate transparent conducting metal-oxide contacts with two-dimensional (2D) semiconductors into these devices.

Ultrathin semiconductor sheets that are composed of transition metals associated with chalcogen atoms, such as sulfur, selenium and tellurium, present exceptional electronic properties and optical transparency. However, to date, incorporating molybdenum sulphide (MoS2) monolayers into circuits has relied on silicon substrates and metal electrodes, such as gold and aluminum. The opacity of these materials has stalled attempts to develop fully transparent 2D electronic devices.

The KAUST team led by material scientists Xi-Xiang Zhang and Husam Alshareef has combined MoS2 monolayers with transparent contacts to generate a series of devices and circuits, such as transistors, inverters, rectifiers and sensors. The contacts consisted of aluminum-doped zinc oxide (AZO), a low-cost transparent and electrically conductive material that may soon replace the widely used indium-tin oxide. “We wanted to capitalize on the excellent electronic properties of 2D materials, while retaining full transparency in the circuits,” explains Alshareef.

According to Alshareef, the researchers grew the contacts over a large area by atomic-layer deposition, during which individual atom layers precisely accumulate on a substrate. Their main difficulty was to also form high-quality MoS2 monolayers on silicon-based substrates over a large area. “We overcame this by using an interfacial layer that promotes MoS2 growth,” says Alshareef.

The team also developed a water-based transfer process that moves the as-deposited large-area monolayers onto a different substrate, such as glass or plastic. The researchers then deposited the AZO contacts on the transferred 2D sheets before manufacturing the devices and circuits.

The resulting devices outperformed their equivalents equipped with opaque metal contacts, such as gate, source and drain electrodes, which demonstrates the high compatibility between transparent conducting metal-oxide contacts and MoS2 monolayers. “The transistors fabricated by the large-area process showed the lowest turn-on voltage of any reported MoS2 monolayer-based thin-film transistor grown by chemical vapor deposition,” says PhD student Zhenwei Wang, first author of the study.

“Additional circuits are planned that will help demonstrate that our approach is robust and scalable” says Alshareef.

Global demand for flat panel displays by area is forecast to grow 7.2 percent to 210 million square meters in 2018 compared to 2017, according to IHS Markit (Nasdaq: INFO). That will be the biggest annual growth since 2014.

“Growth in demand for flat panel displays next year will be mainly driven by migration to large displays, declining panel prices, and high expectations for a recovery in the global economy,” said Ricky Park, director at IHS Markit.

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The rise in demand area is largely attributed to a fall in retail prices of applications along with a drop in panel prices, which is expected to spur consumers’ appetite for various display devices. The sharp fall in panel prices in the second half of 2017 should soon be reflected in the prices of consumer electronics goods in the upcoming peak shopping seasons later this year and in early 2018. The cheaper panel prices are also expected to bolster demand for larger display products. As Gen 10.5 fabs are due to start operation in the first half of 2018, supply of super large TV panels, including 65- and 75-inch products, is projected to grow, according to the Display Long-term Demand Forecast Trackerreport by IHS Markit.

Increasing adoption of bezel-less flexible organic light-emitting diode (OLED) display in smartphones will lead to a growth in the size of overall smartphone displays next year. “Launches of new smartphones with large screens should stimulate consumers’ demand to replace their old phones,” Park said.

The flat panel TV market is also expected to see a significant rise in replacement demand, following the transition into digital broadcasting from analogue signal that started in late 2000s. TV sales in markets where the digital transition was completed in late 2000s grew at 10 to 21 percent in 2009 and 2010, much faster than the compound annual growth rate of 3 percent between 2004 and 2014. “A consumer’s TV replacement cycle is usually about 10 years,” Park said. “A hike in replacement demand for the next few years is expected.”

The global flat panel market will also get a boost from higher demand for new and larger TVs ahead of the 2018 PyeongChang Winter Olympics scheduled in February and the 2018 FIFA World Cup in Russia in June. “Panel sales in even years when major world sports events were held had grown at a faster rate than in odd years,” Park said.

In addition, the ongoing recovery in the global economy bodes well for the panel demand. Global gross domestic product (GDP) is forecast to grow 3.2 percent in 2018, following 3.1 percent in 2017 and 2.5 percent in 2016, according to IHS Markit. In particular, the economic recovery in North America and emerging markets, such as India, Brazil and Russia, is expected to be stronger than the previous year. A rise in non-ferrous metal prices, often a precursor to an economic recovery, is another positive sign.

Unlike the strong gain in demand by area, the growth in the global flat panel market in value is, however, projected to be restrained by the fall in the panel price in the second half of 2017. The panel demand by value is forecast to rise 1 percent to $126 billion in 2018 from 2017, according to IHS Markit.

Researchers at the University of Liverpool have made a discovery that could improve the conductivity of a type of glass coating which is used on items such as touch screens, solar cells and energy efficient windows.

Coatings are applied to the glass of these items to make them electrically conductive whilst also allowing light through. Fluorine doped tin dioxide is one of the materials used in commercial low cost glass coatings as it is able to simultaneously allow light through and conduct electrical charge but it turns out that tin dioxide has as yet untapped potential for improved performance.

Compensating acceptor fluorine interstitials (light green) dramatically reduce electronic performance of tin dioxide transparent conducting glass coatings doped with fluorine atoms (dark green). Credit: University of Liverpool

Compensating acceptor fluorine interstitials (light green) dramatically reduce electronic performance of tin dioxide transparent conducting glass coatings doped with fluorine atoms (dark green). Credit: University of Liverpool

In a paper published in the journal Advanced Functional Materials, physicists identify the factor that has been limiting the conductivity of fluorine doped tin dioxide, which should be highly conductive because fluorine atoms substituted on oxygen lattice sites are each expected to give an additional free electron for conduction.

The scientists report, using a combination of experimental and theoretical data, that for every two fluorine atoms that give an additional free electron, another one occupies a normally unoccupied lattice position in the tin dioxide crystal structure.

Each so-called “interstitial” fluorine atom captures one of the free electrons and thereby becomes negatively charged. This reduces the electron density by half and also results in increased scattering of the remaining free electrons. These combine to limit the conductivity of fluorine doped tin dioxide compared with what would otherwise be possible.

PhD student Jack Swallow, from the University’s Department of Physics and the Stephenson Institute for Renewable Energy, said: “Identifying the factor that has been limiting the conductivity of fluorine doped tin dioxide is an important discovery and could lead to coatings with improved transparency and up to five times higher conductivity, reducing cost and enhancing performance in a myriad of applications from touch screens, LEDs, photovoltaic cells and energy efficient windows.”

The researchers now intend to address the challenge of finding alternative novel dopants that avoid these inherent drawbacks.

Kateeva, a developer of inkjet deposition equipment solutions for OLED display manufacturing, today formally introduced a suite of YIELDjet inkjet equipment for red, green and blue (RGB) pixel deposition to enable the development and pilot production of large-size OLED displays, including televisions (TVs). The new YIELDjet family, which consists of the EXPLORE and EXPLORE PRO systems, provides display manufacturers with an industry-proven inkjet deposition platform to help bring the next generation of OLED TVs and other large-size displays to market. This year so far, Kateeva has shipped four systems from the EXPLORE family. The company expects to ship three additional systems by the second quarter of 2018.

The EXPLORE family broadens Kateeva’s product line and deepens the company’s penetration of the OLED display sector. The YIELDjet FLEX system already leads the inkjet deposition market for OLED mobile displays, with multiple systems deployed in mass production for OLED thin film encapsulation (TFE). The YIELDjet EXPLORE and EXPLORE PRO tools contain the same demonstrated core technologies found in the YIELDjet platform, with system designs that are optimized for rapid development of RGB pixel printing. Both tools, for instance, feature Kateeva’s unique nitrogen printing capability, which provides an oxygen- and- moisture-free enclosure for inkjet deposition. This capability is known to greatly increase OLED device lifetime.

The new products aim to help customers compress their in-house development- to- pilot-production cycle for printed RGB OLED displays, including TVs. To achieve this, the systems are designed for flexibility and scalability. The EXPLORE processes small panels (up to 200 mm square) for initial development, while the EXPLORE PRO targets mid-size panels (up to 55-in. display) for development through pilot production. As many as nine inks can be loaded into each tool at the same time. This enables accelerated evaluation of multiple materials during critical phases of process development.

The products offer an alternative to the traditional RGB pixel deposition approach of vacuum thermal evaporation (VTE) with a fine metal mask (FMM). Instead, printing is used to form the active layers within the pixels that generate the red, green and blue light emitted from the OLED device. Manufacturers are interested in using inkjet printing to overcome the scalability limitations of VTE with FMM.

VTE with FMM is currently used for small displays to fabricate patterned RGB active layers. However, the approach has not been successfully scaled to enable production of large displays such as those required for premium TVs. White OLED (WOLED) TV works around the issue by using VTE to form an un-patterned white OLED layer. This eliminates the need for FMM and creates the red, green, and blue light using three separate color filters (similar to the structure of a liquid crystal display). Although WOLED TVs are considered the best on the market, RGB OLED TVs fabricated using inkjet deposition can potentially offer superior performance. Moreover, manufacturing costs could be 20 percent lower, according to a recent analysis.

The potential of inkjet-fabricated RGB OLED TVs, coupled with the enabling capabilities of the YIELDjet EXPLORE products, have generated excitement among OLED display manufacturers, according to Kateeva’s President and COO, Dr. Conor Madigan. “There is increasing enthusiasm among our customers to develop RGB OLED TVs and we believe our new systems will help them accelerate their initiatives,” he said. “These companies are innovating rapidly and pioneering novel processes to mass-produce differentiated displays. Our products let them utilize Kateeva’s unique technologies as part of their inkjet RGB pixel printing programs. We are excited to work with them to move this approach closer to mass production.”

The YIELDjet Inkjet Advantage

Kateeva’s inkjet solution for RGB pixel deposition R&D utilizes core disruptive features found in the company’s YIELDjet platform. This OLED production equipment solution has already helped display manufacturers transition to flexible OLED mass production with high yields and low costs. Now, the same features, coupled with additional innovations for RGB pixel printing, promise to enable a similar transition to RGB OLED TV mass production by addressing customers’ yield and productivity priorities. Key YIELDjet technical features and advantages include:

  • Pure process environment: Trace amounts of oxygen and moisture, as well as large particles, can degrade OLED device performance and reduce yield. The same impurities are known to degrade OLED device lifetime. Processing in a clean, high-purity environment, therefore, is a central requirement for OLED front-plane manufacturing equipment. The YIELDjet solution features a specially designed nitrogen-purged enclosure that delivers an ultra-pure printing environment and enables fast recovery after maintenance. The result is longer OLED lifetime, higher yields, and higher uptime.
  • Superior uniformity: Non-uniform deposition of the printed layer can create “mura”. Mura, which refers to visibly noticeable non-uniformities in the finished display, will reduce yield. Print non-uniformity can be caused by inherent variations in the nozzles contained in the print array. The YIELDjet platform addresses the issue by combining two proprietary technologies—ultra-fast print head monitoring and Smart Mixing™ software. A remote drop inspection (RDI) system measures the drop characteristics for every nozzle in the print array on a continuous basis so that the state of the print array is known at all times. The nozzle data is used to calibrate the proprietary Smart Mixing software, which determines the optimized nozzle mixing for each sub-pixel during the print. The result is a system that delivers displays that are free of print mura in mass production.
  • High resolution: To achieve the resolution required for a product like an 8K TV, a key printing imperative is ink drop placement accuracy. This requires high stage accuracy. To enable high stage accuracy for all glass sizes, Kateeva pioneered the use of a “floating stage” for inkjet printers. With this capability, the glass floats on a thin cushion of nitrogen, which flows from a specially designed stationary stage. As the glass is scanned at high speed over the nitrogen cushion, proprietary stage-error correction technology is deployed to ensure the high accuracies needed for RGB pixel printing.

In addition to RGB pixel printing, the EXPLORE tools can be configured to process OLED TFE. This allows customers who are interested in both applications to conduct R&D or pilot production with the same EXPLORE or EXPLORE PRO tool.

Oxide thin-film transistor (TFT) liquid crystal display (LCD) panels are increasingly adopted in mobile PCs due to their feature of high resolution while consuming low power. Global shipments of large oxide TFT LCD panels of 9 inches or larger are expected to grow from 20 million units in 2016 to 55.6 million units in 2017, according to new analysis from IHS Markit (Nasdaq: INFO). Of those, 51 million units are estimated to be applied to mobile PCs, which include notebook PCs and tablet PCs, up 200 percent from 17 million units in 2016.

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“Demand for high-resolution panels has increased as media content for mobile PCs became available in higher resolutions,” said David Hsieh, senior director at IHS Markit. “Apple’ and Microsoft’s use of oxide TFT LCD panels for products – iPad, iPad Pro, and Surface, respectively – helped increase the oxide mobile PC panel market and encouraged other PC brands to follow suit.”

Low-temperature polysilicon (LTPS) and oxide TFT LCD solutions are major candidates for displaying high-resolution images, and they are expected to account for more than 19 percent of the entire mobile PC display market in 2017, according to the Large Area Display Market Tracker by IHS Markit.

While LTPS can deliver higher resolution images and consume less power than oxide TFT LCD or a-Si TFT LCD, it has its own limits: its production cost is high and the yield rate is low. In addition, it is less efficient to produce large panels. Albeit not as high resolution as LTPS, oxide TFT LCD panels still display high-resolution images better than the a-Si solution, and they are suitable to produce large panels at lower production cost than LTPS.

LG Display and Sharp have expanded their oxide mobile PC panel shipments aggressively by 180 percent and 370 percent, respectively. CEC Panda in China is estimated to increase its shipments from about 600,000 units in 2016 to 4.2 million in 2017. As some oxide panel suppliers are reducing their focus on the mobile PC display business, display makers in China and Taiwan, such as BOE and Innolux, are expected to produce more oxide panels in future, IHS Markit said.

 

A major decrease in manufacturing cost gap between organic light-emitting diode (OLED) display and liquid crystal display (LCD) panel is expected to support the expansion of OLED TVs, according to new analysis from IHS Markit (Nasdaq: INFO).

The OLED Display Cost Model analysis estimates that the total manufacturing cost of a 55-inch OLED ultra-high definition (UHD) TV panel — at the larger end for OLED TVs — stood at $582 per unit in the second quarter of 2017, a 55 percent drop from when it was first introduced in the first quarter of 2015. The cost is expected to decline further to $242 by the first quarter of 2021, IHS Markit said.

The manufacturing cost of a 55-inch OLED UHD TV panel has narrowed to 2.5 times that of an LCD TV panel with the same specifications, compared to 4.3 times back in the first quarter of 2015.

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“Historically, a new technology takes off when the cost gap between a dominant technology and a new technology gets narrower,” said Jimmy Kim, principal analyst for display materials at IHS Markit. “The narrower gap in the manufacturing cost between the OLED and LCD panel will help the expansion of OLED TVs.”

However, it is not just the material that determines the cost gap. In fact, when the 55-inch UHD OLED TV panel costs were 2.5 times more than LCD TV panel, the gap in the material costs was just 1.7 times. Factors other than direct material costs, such as production yield, utilization rate, depreciation expenses and substrate size, do actually matter, IHS Markit said.

The total manufacturing cost difference will be reduced to 1.8 times from the current 2.5 times, when the yield is increased to a level similar to that of LCD panels. “However, due to the depreciation cost of OLED, there are limitations in cost reduction from just improving yield,” Kim said. “When the depreciation is completed, a 31 percent reduction in cost can be expected from now.”

Display shipments for notebook PCs are forecast to increase by 5 percent in 2017 to 177 million units compared to the previous year, while notebook PC unit shipments are expected to remain flat during the same period. Being worried about slower shipments next year due to higher inventory, panel makers are focusing on expanding high-end displays, such as in-plane switching (IPS) technology and low-power consuming displays.

According to IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions, IPS displays with wide-view angle and high color accuracy are expected to make up 37 percent of total notebook PC panel shipments in 2017, up from 27 percent in 2016. The share will continue to grow in 2018 to 42 percent.

“Production of IPS panels could bring economic benefits to panel makers, such as higher price and larger capacity consumption,” said Jason Hsu, senior principal analyst at IHS Markit.

The price of a typical IPS panel is about 30 percent higher than a conventional twisted nematic (TN) panel of the same size, while a premium IPS panel can cost double or higher. Moreover, producing one IPS panel will consume capacity more than 20 percent compared to producing a TN panel since it requires more photo masks, resulting in a longer take-time in the production line.

Lenovo, the largest IPS panel buyer, is estimated to purchase more than 12 million units of IPS panels in 2017. Dell has been focusing on the mid- and hi-end segments, applying more IPS panels to its products than its competitors. HP is also expanding IPS panel adoption, contributing to the IPS panel shipment growth in 2018.

Another feature display makers are focusing on is displays that consume lower power. As slim notebook PCs become the design trend, low-power consumption display is a critical need as the battery capacity is limited due to very compact chassis. With the advanced substrate technology such as oxide and low-temperature polycrystalline silicon (LTPS), the power consumption of LCD panel can be managed at a lower level.

According to IHS Markit, adoption of oxide and LTPS panels in the notebook PC market is expected to grow from 3 percent in 2016 to 10 percent in 2017 and to 13 percent in 2018. In the past, these advanced panel technologies were mostly used for premium panels like ultra-high definition (UHD)/wide quad HD (WQHD) resolution displays, but the application will expand to full HD resolution displays, driving the market demand.

In 2018, panel suppliers may have more pressure to maintain panel prices as panel oversupply is expected to continue. “But if the display evolution continues, raising the average selling price, panel makers will not necessarily struggle,” Hsu said.

The average selling price of a notebook PC panel is expected to increase to $46.68 in 2017 and to $47.96 in 2018, from $42.15 in 2016. “Although shipments in unit might decline next year, there are still opportunities for panel makers to increase revenues.”

 

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TowerJazz, the global specialty foundry, announced today a partnership with Changchun Changguang Yuanchen Microelectronics Technology Inc. (YCM), a BSI process manufacturer for backside illumination (BSI) manufacturing in Changchun, China to provide the BSI process segment for CMOS image sensor (CIS) wafers manufactured by TowerJazz. This partnership will allow TowerJazz to serve its worldwide customers with advanced BSI technology in mass production, at competitive prices, starting in the middle of 2018.

The new BSI technology will be utilized for high-end photography, automotive, and AR/VR, among other growing CIS markets. This is the first time BSI will be offered by a foundry to the high-end photography market, including large formats requiring stitching.

BSI and stacked wafers are the state of the art CIS technology for higher pixel sensitivity, allowing a boost in the number of photons captured by the pixels for better picture quality in low light conditions, as well as providing higher dynamic range and higher frame rates (faster sensors).

TowerJazz and its leading customers view BSI technology as playing an important future role in the growing high-end CIS market, including DSLR high end photography, cinematography cameras, and automotive, among others. TowerJazz’s BSI offering is unique in the sense that it is focused on high-end large format, including stitched sensors. It also provides the roadmap for wafer stacking, including pixel level wafer stacking.

“TowerJazz is recognized worldwide as the leader of CMOS image sensor manufacturing platforms for high-end applications,” said Dabing Li, YCM Chief Executive Officer. “The collaboration with TowerJazz will certainly allow us to bring unique and high value technology to the market quickly and in high volume, especially to the growing Chinese market where TowerJazz already plays a significant role.”

“I am thrilled with the capabilities we developed with YCM, supporting our continued leadership in many different high-end growing markets. In addition, the excellent collaboration with YCM enables us further penetration into this very fast growing high-end CMOS camera market in China,” said Dr. Avi Strum, Senior Vice President and General Manager, CMOS Image Sensor Business Unit.  “I have very high confidence in the technical capabilities of this partnership.”

As organic light-emitting diode (OLED) displays are used in more smartphones and high-end flat panel TVs, panel makers have boosted their investments in new OLED display fab construction. As a result, the global production capacity of AMOLED panels — including both red-green-blue (RGB) OLED and white OLED (WOLED) — is forecast to surge 320 percent from 11.9 million square meters in 2017 to 50.1 million square meters in 2022, according to new analysis from IHS Markit (Nasdaq: INFO).

The production capacity of RGB OLED panels for mobile applications will increase from 8.9 million square meters in 2017 to 31.9 million square meters in 2022, while the OLED capacity for TVs, mainly WOLED but including printing OLED, is set to grow from 3.0 million square meters in 2017 to 18.2 million square meters in 2022, says the latest Display Supply Demand & Equipment Tracker by IHS Markit.

The two market leaders — Samsung Display and LG Display — have taken different paths: Samsung is focusing on RGB OLED panels for mobile devices, and LG on WOLED displays for TVs. To cope with the trend of RGB OLED replacing the liquid crystal display (LCD) in smartphones and other mobile devices, especially for the full-screen and flexible feature of OLED panels, LG Display has started to manufacture RGB OLED panels in 2017. Meanwhile, Chinese panel makers, including BOE, ChinaStar, Tianma, Visionox, EverDisplay, Truly and Royole, are all expanding the production capacity of RGB OLED panels, targeting the mobile market.

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“It takes more than $11.5 billion to build a Gen 6 flexible OLED factory with a capacity of 90,000 substrate sheets per month, and this is a much larger investment required than building a Gen 10.5 TFT LCD fab with the same capacity,” said David Hsieh, senior director at IHS Markit. “The learning curve costs for the mass production of flexible OLED panels are also high. The financial and technological risks associated with the AMOLED panels have hampered Japanese and Taiwanese makers from entering the market aggressively,” Hsieh said. “In other words, the capacity expansion of AMOLED display, whether it is RGB OLED or WOLED, is only apparent in China and South Korea.”

Samsung Display will remain the dominant supplier of the RGB OLED panels for smartphones. Its RGB OLED panel capacity will grow from 7.7 million square meters in 2017 to 16.6 million square meters in 2022, IHS Markit says. Even though many Chinese panel makers are building RGB OLED fabs, each of their production capacity is much smaller than that of Samsung Display. Due to the gap in their production capacities, they will target different customers: Samsung Display will mainly focus on two major customers — Samsung Electronics (the Galaxy) and Apple (the iPhone), while Chinese makers will be targeting at Chinese smartphone makers at a smaller scale. These include Huawei, Xiaomi, Vivo, Oppo, Meizu, Lenovo and ZTE, and white box makers.

South Korea’s panel makers are estimated to account for 93 percent of the global AMOLED production capacity in 2017, and their share is expected to drop to 71 percent in 2022. Chinese players (BOE, ChinaStar, Tianma, Visionox, EverDisplay and Royole) will account for 26 percent in 2022 from 5 percent in 2017.

“Many interpret the strong expansion of RGB OLED capacity in China as a threat to South Korean makers. It is indeed a threat. However, while South Korean companies have high capacity fabs with high efficiencies, China’s OLED fabs are relatively small and dispersed across multiple regions and companies,” Hsieh said. “Also, while the Chinese makers could expand fabs with government subsidies, the operating performance will completely depend on the panel makers themselves. How long it will take until they could sustain the business, getting over the challenges with learning curve costs, initial low yield rates and capacity utilization, is still an open question.”