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>> Korean manufacturers do not invest in OLEDs. Is this the opportunity for domestic manufacturers or pits? 27th,Apr,2018
As Samsung Display and LG Display (LGD) may not invest in small and medium-sized OLED devices in 2018, it is rumored that the machine equipment produced by Canon Tokki will all be sold to the Chinese mainland market. Canon Tokki's exclusive production of key equipment for small and medium sized OLED processes has led to the conclusion that in 2018 the display investment will be dominated by the mainland industry.
According to Korean media ET News, the organic material evaporation machine produced by Canon Tokki in Japan will be sold in full to China in 2018. Although Japan Display (JDI) also intends to invest in small and medium sized OLED panels, there is no clear investment plan in 2018, making mainland Chinese panel makers become the protagonists of investment in small and medium sized OLED devices.
According to industry sources, Canon Tokki plans to ship 11 organic vapor deposition machines in 2018. One of them has been delivered to LGD at the beginning of 2018, which is the third phase of the LGD E6 production line.
Originally, LGD intends to postpone the investment time. However, LGD and Canon Tokki failed to negotiate due to issues such as manufacturing schedules and liquidated damages. In the end, LGD completed the purchase according to the original plan. However, with the exception of the evaporation machine, the purchase of other machines was suspended.
LGD's cooperating vendors stated that they had been coordinating shipment time with LGD and suddenly received notification that the procurement plan had been suspended. There are no further instructions. Recently, the global smart phone panel market has fallen into a recession, and panel makers have taken a wait-and-see attitude towards market development.
Samsung Display may invest a small part of equipment in the new plant A5 by the end of 2018, but so far no mention has been made of the investment planning of key equipment. Therefore, it is considered that the Samsung Display does not have a high chance of investing in other new investments. Since the Samsung Display converted the L7-1 production line into the OLED production line (A4), no official production date has been announced so far; the production rate of the A3 production line is also lower than 50%, and efforts are being made to increase the production rate of the existing production line. It is the primary issue.
The industry predicts that Japanese monitors may invest in 6th generation OLED production lines by the end of 2018. However, the recent poor performance of Japanese displays has led to the decision to prioritize limited resources for medium and small-sized LCD businesses, as well as to reduce the possibility of implementing small and medium-sized OLED investments.
According to the South Korean industry, Samsung Display is a major customer of Canon Tokki. It should be certain that there will be enough quantities of vapor deposition machines available in the future and that it will firstly focus on the market.
The market adjustment agency Display Supply Chain Consultants predicts that the total investment in global display equipment in 2018 will be approximately 21 billion U.S. dollars, of which 18.9 billion U.S. dollars (88%) are from mainland China.
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