It has been reported that Samsung Display is planning to empty the L8-1 complex in Asan, South Chungcheong Province, which was used as an LCD production line, to increase production capacity of QD displays considering the growth potential of QD displays. The plant already has a 30,000-page QD-OLED production line.
The Chosun Ilbo, a South Korean daily, reported on Monday that Samsung Display is dismantling production lines in stages after withdrawing from the LCD business, which is less profitable. L7 and L8, the most representative LCD production lines, are composed of two layers. The first floor is called L7-1 and the second floor is called L7-2.
In order to ensure price competitiveness of LCD panels, Samsung Display has kept some TV LCD production lines, but it has dismantled L7-2 in the Asan complex and replaced some L8-1 production lines with Q1 production line for QD-OLED. The company signed a contract with YMC in July this year to dismantle some of its LCD equipment, which was left idle when the Q1 production line was opened.
According to the Electronic bulletin system of the Financial Supervisory Service, YMC signed a 64.7 billion won (350 million yuan) contract with Samsung Display. The contract expires on May 31 next year. Prior to this, YMC also started dismantling the l7-2 production line, which had been discontinued in April. The L7-2 production line will be converted to A4E with a 6 generation (1500×1850 mm)OLED production line. With the expansion of the IT OLED market, related production capacity is also increasing.
The guarantee of l8-1's spare space is interpreted as the implementation of the contract signed in July this year. The equipment is expected to be dismantled in the next few months. The dismantled equipment is being kept by Samsung C&T for the time being, and it is being discussed that the equipment will be sold to BOE and CSOT of China. Qd-oled Q1 production line has been set up in L8-1 with a monthly production capacity of 30,000 pieces. It can produce 1 million qD-OLED panels per year for 55-inch and 65-inch TVS. Major customers of QD-OLED are Samsung Electronics and SONY of Japan. Samsung Electronics plans to introduce QD-OLED TVS as its flagship product line at CES 2022, the world's largest electronics and IT show, in January next year.
Samsung Electronics sells about 50 million TVS a year. Even at maximum supply, Samsung's qD-OLED display capacity is only about 2 percent. Excluding the supply to SONY, The total number of QD-OLED TVS produced by Samsung electronics is only in the hundreds of thousands a year.
QD display is a next-generation technology that Samsung Electronics Vice Chairman Lee Jae-yong regards as a future development goal. Both Samsung Display and Samsung Electronics face the task of increasing qD-OLED production and TV sales. Another factor is the LCD panel market, where price control is shifting to Chinese manufacturers. "Samsung Electronics and Samsung DISPLAY are likely to increase production capacity as they see the potential of THE QD-OLED market," said an industry source.
The l8-1 inner clear line is also likely to be an eight-generation (2,200 × 2,500mm)OLED production line for IT. Since the 8.5 generation board can cut more output from one master plate, it is more economical than the current main force of the 6 generation board. Samsung Display is developing new device technology with A Japanese supplier to build an 8.5-generation OLED production line.
