Samsung will sell part of its LCD production line to OLED panel


According to the report of Korean media, Samsung will sell some of the L7 production line's Yujing plant's liquid crystal production equipment and convert the L7 production line to produce OLED panels. The planned L7 panel production line will mainly produce 40-inch LCD panels. At present, Samsung has six panel factories in Korea, of which L6 to L8 are LCD panel factories, L6 mainly produces panels for IT products, and L7 and L8 produce TV panels. A1 to A3 are OLED panel manufacturers, of which A1 produces flat OLED panels, A2 production planes, flexible OLED panels, and A3 produces flexible OLED panels.




Previously, Samsung Display had eight LCD production lines in South Korea, plus the planned transformation of the L7 production line. Samsung has closed six of the eight LCD production lines. The fifth-generation TFT-LCD production line was sold to Chinese company Truly Optoelectronics for US$50.88 million. The L5 plant previously produced small and medium-sized LCD panels, such as monitors, notebook screens, and 32-inch TVs, with monthly production capacity of 100,000 to 120,000. In 2014, Truly Optoelectronics also took over the Samsung Gen4 LCD panel production line at the same location.

According to Korean media reports, Samsung will also be closed on the Tianan L6 production line. The technical route of the Samsung L6 production line has changed from amorphous to low temperature polycrystalline silicon (LTPS) last year. According to industry sources, the transition to LTPS technology is a last resort step to avoid production stoppages. After the L6 production line was improved, no equipment investment was recovered.

According to statistics, in March of this year, only 25.1% of Samsung LCD TVs were provided by Samsung monitors, a decrease of nearly 20% compared with the same period last year. At present, Samsung LCD TV panels are supplied by a large proportion of Chinese and Japanese manufacturers. The Korean company LGD provided LG Electronics with 70% TV panels.

At the same time, Samsung is increasing investment in the OLED panel area. Samsung recently decided to invest 325 million US dollars to increase the production capacity of A3 flexible OLED production line to meet the growing demand for OLED panels. It is reported that the A3 plant will increase its production capacity from 15,000 substrates per month to 30,000.

At the same time, according to foreign media reports, Samsung's Samsung Display in order to ensure the future supply of OLED panels to Apple, plans to invest up to 7.47 billion US dollars, increase the corresponding equipment, expand production capacity.

At present, the price competition for small and medium size LCD TV panels has become increasingly fierce, and the profit margin has gradually narrowed. Currently, Samsung has begun to close the existing LCD production line and expand the production capacity of OLED panels. According to industry insiders, Samsung Display decided to close the LCD production line earlier than expected.

Recently, Korean research agency UBI Research released data that shows that in the first quarter of 2016, Samsung Display AMOLED panel shipments have increased to 86.7 million, and global AMOLED panel shipments during the same period was 91.3 million. Samsung still maintains its dominant position in the small and medium size AMOLED panel market, with a market share of nearly 95%.

In smartphone shipments in the Chinese market in 2015, the proportion of AMOLED-equipped panels increased from 5% in the previous year to 13%; in 2016, the shipment of smartphones carrying AMOLED panels in the Chinese market is expected to exceed 88 million, accounting for Continue to rise to 19%. According to data from third-party research institutions, the 2016 OLED market will have a scale of approximately US$15 billion. By 2022, this market will grow to US$29.1 billion.

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