Chinese display panel manufacturers are thinking about using their investments that are originally planned to be used for LCD facilities for OLED facilities. They are thinking about this way because industries are beginning to use more of small and medium-sized OLED panels especially for Smartphones and need for securing competitive edge in manufacturing OLED panels has become urgent as Apple has started to regularly use OLED panels for iPhones. Because level of difficulty for OLED technology is high, they are witching their gears to quickly respond to R&D and hiring employees that are expert in this area.
According to an industry on the 21st, major Chinese panel manufacturers such as BOE, CSOT, Tianme and others are thinking about using their investments that are originally planned to be used for 7th and 8th Generation LCD facilities for OLED facilities. BOE already started its investments for 10.5th Generation LCD facilities, and CSOT is also going to confirm its investments for 11th Generation shortly. Due to these reasons, they believe that it will be more advantageous from competitive edge perspective to quickly respond to OLED rather than making additional investments into LCD.
BOE is the business in China that is most active in making investments into OLED. It is going to invest shortly into Flexible OLED production line that will be established in Chengdu and has decided to produce 45,000 6th Generation Flexible OLED panels per month by 2019. Size of investment is about $24.5 billion Yuan ($3.78 billion (4.29 trillion KRW)). After placing an order for 10.5th Generation LCD facilities recently, it is going to start placing an order for investments for B7 sometime during first half of this year.
Although BOE was thinking about using B11 that is supposed to be built in Sichuan Province as LCD lines, it is heard that BOE is rethinking about using B11 for OLED lines for large TVs. Since it already has started making investments for 10.5th Generation LCDs, it is also looking into entering large OLED markets as well.
“Not only is BOE thinking about small and medium-sized OLEDs, it is also thinking about OLED panels for large TVs.” said a representative for this industry. “Its intention is to grab both large LCD and large OLED panel markets.”
It is heard that CSOT is making investments into flexible OLEDs instead of extending production capability of T2, which is 8th Generation LCD line located in Shenzhen. Although it was planning to increase production capability of T2, which is based on LTPS LCD, from 20,000 sheets per month to 40,000 sheets per month this year, it changed its plan as flexible OLED markets are growing quickly.
Although Tianme planned to make investments into 6th Generation LTPS LCD in Wuhan after making same investments in Xiamen last year, its recent mood has changed. It is heard that Tianme thinking about investing into flexible OLED instead of LTPS LCD. Although its original goal was to secure production capability of 82,000 sheets per month until end of 2017 by building 2 new facilities, it changed its strategies as trend of markets is changing quickly.
Ever Display, which was the first Chinese business to mass-produce OLED panels, is also preparing to mass-produce flexible OLEDs. Industries are predicting that it will start making investments into 6th Generation flexible OLED sometime during second half of this year.
Visionox, which made stable facility investments of 5.5th Generation OLED in Kunshan early this year, is examining about second step of investment.
Industries predict that there is a high chance that Truly will convert its current 4th Generation rigid OLED facility into flexible OLED facility and increase production capability of flexible OLED.
Industries are predicting that Samsung Display, LG Display, and JDI will grow as major manufacturers that supply flexible OLEDs while Chinese panel manufacturers will preoccupy small-sized markets. Most of industries believe that since technical level in OLED is significant between manufacturers, investments from Chinese panel manufacturers won’t be immediate threats towards South Korean businesses.
Staff Reporter Bae, Okjin | email@example.com