According to Korean media ETnews on April 15, Samsung Display has started to install display process equipment at its 6th generation OLED plant (A4-2) in Asan, investing nearly 1 trillion won (5.86 billion yuan), which is expected to benefit display equipment manufacturers.
The Samsung Display A4-2 production line is a retrofit from the LCD plant (L7-2) that was closed in early 2021 and is expected to be operational as early as Q3. Orders for equipment for the line are open from the end of 2021.
Due to the introduction of some equipment from the first quarter of this year, the a4-2 line construction speed is very fast. Through the construction of the OLED production line, Samsung Display will increase its annual production capacity of 180,000 6TH generation OLED panels. It is reported that the production line will cost about 1 trillion won.
The A4-2 plant is more of a complementary investment than an expansion. This is to address the investment imbalance in Samsung display A3 and A4 capacity. Samsung Display began to focus on Y-OCTA and low-temperature polycrystalline oxide (LTPO) processes in A3 and A4 production lines. Because of this, existing 6 generation OLED production capacity has been partially reduced.
The report said that equipment manufacturers are eager to see Samsung Display expand its INVESTMENT in OLED. As display panel manufacturers have been investing heavily for some time, equipment investment is expected to start with a4-2. Samsung display's A4-2 factory also has room to ensure an additional 180,000 sheets per year. If additional orders are made, large equipment orders similar to this additional investment are expected to follow.
Samsung Displays a flexible response to IT OLED demand and can decide whether to make additional investment depending on market conditions. Some display equipment manufacturers are also preparing to invest in Samsung Display s A5 plant. It is reported that the 6th or 8th generation OLED production line will be built at the A5 plant.
