The industry has come out that the Chinese government has no longer subsidized the TFT-LCD industry, and has fully promoted OLED (AMOLED, active organic light-emitting diode). In order to get more subsidies, it will encourage BOE to actively invest in OLED panels. It is expected that in 2019. It will be a year of OLED panel capacity explosion.
In the past, 95% of the global OLED panel market was exclusively owned by Samsung Display, but this year, in addition to LGD's participation in the war, Chinese manufacturers have also accelerated their positive development; according to CINNO Research, as of the end of June this year, China Up to 11 OLED production lines have been built and are under construction.
According to the research institute IHS, the market share of Samsung Display's OLED panel will drop rapidly from 95% in the peak period to 52% in 2020; BOE will be the second with 15%, and LG Display will be the third with China's Tianma and Huaxing. Photoelectricity is ranked 4th and 5th with a market share of about 5 to 6%.
IHS estimates that the OLED penetration rate of smart phones will surpass LCD to 50.7% and market value will be about 20.7 billion US dollars in 2019. In 2025, the penetration rate of OLED will further increase to 73%. In terms of TV panels, OLED has become synonymous with high-end TV products; according to IHS statistics, TVs with a price of more than US$2,000 in the second quarter of this year have an OLED penetration rate of 59% in Japan and about 45% in North America and Europe.
According to information provided by BOE, Chengdu AMOLED production line has been mass-produced and shipped in October 2017. The current yield is over 70%, and hopes to exceed 80% at the end of this year. Mianyang's 6-generation flexible AMOLED line is expected to begin next year. Put into production.
In addition to the existing two production lines, BOE also announced at the investor conference held recently that it will spend RMB 46.5 billion to build the third 6th generation flexible AMOLED production line in Chongqing, and officially started construction on December 8.
Accumulatively, BOE's total investment in OLED panels is as high as RMB 139.5 billion. The monthly design capacity is nearly 150,000 substrates, and each substrate can cut 200 screens.
In addition, in June 2017, Huaxing Optoelectronics invested 5.46 billion US dollars, and the 6th generation OLED production line codenamed T4 was officially started in Wuhan. It is expected to start mass production in 2019. According to the news from the industry in August this year, Huaxing Optoelectronics' 6th generation OLED factory has The trial production began; the total production capacity of the T4 production line was 45,000 pieces per month, and the production capacity of the first phase of the trial production was 15,000 pieces.
As Chinese panel makers compete to invest in OLEDs, Samsubg Display has also begun to set a new battlefield, paving the way for the next generation of new product lines. Due to lower-than-expected sales of iPhone X, the sales rate of Samsung Display OLED A3 plant fell to 50~60% in the first half of this year. According to Korean media ET News, although the two production lines of A4 plant have completed mass production preparation, they will only be the first. Produced with one of the lines.
In terms of large TV panels, Samsung Display will shut down the 8.5-generation LCD factory in mid-2019, so that resources will be concentrated on QD-OLEDs with lower production costs but technically capable of solving OLED aging problems; Samsung Display will be in 2019 Established a small-scale trial production line of QD-OLED, and invested 8.9 billion US dollars in the next three years to fully develop QD-OLED.
Compared with Samsung Display's leading position in small and medium-sized OLED panels, LG Display is focusing on large-size OLED TV panels. LG Display will set up 10.5 generation OLED production lines and 6 generations of flexible in Paju, South Korea in the next two years. OLED production line; if coupled with Guangzhou's 8.5-generation OLED production line, LG Display's total investment in OLED will reach US$13.5 billion by 2020.