Thursday, June 29, 2017

Samsung to build a ‘super OLED factory’ in China

Samsung is the largest OLED manufacturer in the world, and it plans to solidify its position even further by making a “super OLED factory”. The company is planning to build a new production facility which is expected to exceed the production capacity of its A3 plant in China by 30%. The new factory could be named A5, and could be built in Korea.

According to industry sources, Samsung’s board of directors will meet next month to determine the final investment plant for its next OLED factory. If the company starts building its new plant in the second half of this year, it will take another six months or a year before the plant is built, and the production of OLED units could begin in 2019.

Samsung could invest up to KRW 16 trillion for purchasing the equipment that’s required to kickstart the production of OLED panels. Furthermore, the company will keep on investing till 2021 to expand the factory as the plant will be built in two phases. The company had started expanding its A3 plant in 2015 to supply OLED panels to Apple.

Samsung is the leader in small and medium-sized OLED market, capturing around 98% market share. However, manufacturing OLED panels is a chicken-and-egg problem where the production costs keeps falling as the yield increases, and Samsung has the first-mover advantage, so it can make better quality panels at a lower cost than its competitors