The OLED-Info newsletter, July 2017
Published: Wed, 08/02/17
Big month for LG's OLEDs
July was a big month for LG Display. Together with its financial results, the company announced an ambitious OLED investment plan to build new OLED TV and flexible OLED production facilities in Korea and China, bringing its total expected OLED investment by 2020 to over $13 billion. LGD confirmed it is looking for strategic partners (Apple? Google?) to help with financing, while it is also reportedly facing delays with production at its flexible OLED E5 line. LG Display is also reportedly aiming to start mass producing rollable OLED TVs by 2020. Here's a list of LG's important OLED announcements, rumors and reports from July:
- LGD announces $7 billion in new OLED investments for OLED TVs and flexible OLEDs
- LGD confirms it is in talks with strategic partners to fund its aggressive OLED expansion plans
- LGD aims to produce rollable OLED TVs by 2020
- Apple to invest $2.7 billion to secure LGD's flexible OLED capacity in 2019?
- Google to invest in LGD to secure VR OLED display capacity?
- Is LG facing delays with flexible OLED production at its E5 plant? Reports suggest LGD lost Xiaomi's supply deal to SDC
- Idemitsu Kosan and LG Chem to share OLED material patents
- LG's OLED TV wins CE Week's annual TV shootout
- Video shows LG Display's latest displays shown at SID DisplayWeek
TADF updates
TADF and Hyperfluoresence are two emitter technologies that are being under intense research with an aim to provide a non-metal alternative for high-efficiency OLEDs. In July we have visited the TADF Workshop in Kyushu University, Japan, and learned of recent updates from both researchers and the industry. During the conference, Wisechip announced a partnership with Kyulux to bring Hyperfluoresence (HF) emitters to the market by the end of the year.
Wisechip demonstrated an impressive setup that shows how much brighter (or more efficient) a yellow HF will be compared to a fluorescent one - the power saving is almost 50% compared to the company's current PMOLEDs. WiseChip will first offer yellow and green displays, followed by red, blue and white displays.
TADF seems to be getting the attention of OLED producers, and a report in Korean DDaily states that LG Display is looking to replace the fluorescent OLED emitter used in its OLED TVs with a blue TADF emitter. Following the introduction into LG's OLED TV production process, LG hopes to also use TADF materials in its small and medium OLED production. This report is not confirmed yet, of course.
Another Korean publication, ETNews, reports that TADF developer Cynora is finalizing its latest financing round, with aims to raise €15 million. LG Display will participate in the round, investing $9 million, and Samsung Display is also considering a similar sized investment.
Finally, we have Universal Display, which was recently awarded a new patent (USPTO #20170186976) that describes high electroluminescent efficiency TADF OLED emitter and host materials based on benzotriazoles. We reached out to UDC for a comment on this new patent. The company says that the focus of the company is still phosphorescent OLED (PHOLED) technology. The company however patents technology invented by its scientists "even if it is outside our focus, like TADF".
Apple to build its own a 2.5-Gen OLED R&D line
According to reports from Korea, Apple ordered a 2.5-Gen OLED evaporation equipment from Sunic System in order to build an OLED pilot line in Taiwan. The report suggests that Apple wants to develop in-house OLED technologies which will allow it to reduce its reliance on Samsung Display.
This report is not confirmed - but still very interesting. It is not likely that Apple aims to become a display maker (even though some think Apple is on its way to start making Micro-LED displays), but it may be that Apple is indeed looking to improve OLED displays and build its own display IP to create unique displays for its products.
Market report updates
During July, several market analysts released new forecasts for the OLED market. First up we have IHS that sees a $25.2 billion AMOLED market in 2017 with a 63% increase in OLED shipments compared to 2016. By 2021 the OLED market will reach over $40 billion. IHS estimates that a 5.5" HD AMOLED now costs less than an equivalent LCD. Interestingly Samsung themselves say that LCD makers are cutting prices to compete with LCDs. Samsung may also be experiencing under utilization at its OLED fabs.
Looking at the flexible OLED specifically, IHS sees capacity almost doubling each year until 2020, leading to a potential oversupply. IHS says that almost all new small-sized displays OLED capacity added in the future will be used to produce flexible OLEDs, which will grow the market share of flexible OLEDs for mobile applications from 28% today to 80% by 2020.
DSCC also expects the OLED market to rapidly grow in the near future, as AMOLED production capacity will increase at a CAGR of 41% from 2016 (5.3 million square meters) to 2021 (29.4 million square meters). According to DSCC OLED revenues will reach $21 billion in 2017 (compare that to IHS' $25.2 billion) and will reach $46 billion in 2021.
Truly to construct a 6-Gen flexible AMOLED fab in Meishan, China
Truly Semiconductors signed an agreement with the Meishan City government (in Sichuan, China) to establish a joint-venture to construct a 6-Gen AMOLED line. The fab will be mostly used to produce small-sized AMOLED smartphone displays. In addition to the AMOLED line, Truly's new plant will also host a new 5-Gen TFT LCD production line.
Truly estimates that the project will cost a total of 40.4 billion Yuan (almost $6 billion USD). Construction of the AMOLED fab will begin in October 2018, and production is expected to begin in 2021. The cost of the AMOLED fab (which is the second stage in this project, the LCD line will come first) will total $4.1 billion USD. The AMOLED line will use 6-Gen substrates (1500x1850 mm) and will have a monthly capacity of 30,000 substrates (equivalent to over 52 million 5" panels annually).
In addition to smartphone displays, Truly aims to produce smaller displays (1.5-inch and up) for smart watches and larger 10" displays for tablets and similar devices. In November 2016 Truly announced that it has begun to produce panels in its 4.5-Gen AMOLED fab. The current fab has a monthly capacity of 15,000 substrates per month - which can be expanded to 30,000 substrates. Truly is also producing PMOLED displays in a 2.5-Gen line.
Samsung reports a record-breaking quarter, sees lower OLED revenue ahead
Samsung Electronics reported a record-breaking quarter, with revenues reaching $54 billion and an operating profit of $12.6 billion. The company's enjoyed a very strong chip and component business, which offset a slight decline in mobile devices revenues. Samsung Display posted an operating profit of 1.7 trillion Won ($1.5 billion) from revenues of 7.7 trillion Won ($6.8 billion). SDC's OLED business is strong and the company forecasts increased sales of flexible AMOLED displays as more smartphone makers are adopting flexible OLEDs.
SDC did however cut its OLED revenues forecast for Q3 as its rigid OLED panels are seeing price pressure as LCD makers are cutting prices to compete with OLEDs. Another explanation would be the delay in revenues from Apple as Samsung cannot produce as many flexible OLEDs as expected. There are also reports of under-utilization at Samsung's plant (maybe, again, because of the low shipments to Apple which reserved the capacity). Things are expected to return to normal in the first half of 2018, though.
OLED-Info's market reports updated to July 2017
A few weeks ago we published new versions of our market reports - that cover the transparent, automotive, microdisplay, VR/AR and flexible OLED markets. OLED-Info provides comprehensive niche OLED market reports, and our reports cover everything you need to know about the niche market, and can be useful if you want to understand how the OLED industry works and what this technology can provide for your own industry. The reports are now updated to March 2017.
Our updated report list:
UBI Research estimates that the AR and VR market will grow to 96.4 million units and $58.7 billion in device sales by 2021. OLED penetration will grow from 50% (2017) to 80% (2021).
The Asian Nikkei reports on Sumitomo's renewed OLED push, and claims JOLED uses Sumitomo's P-OLED materials
UDC still expects it to take a few years before OVJP can really be deployed in production, but the company has published a nice video that shows off the technology and explains the basic principles and advantages.
Lenovo demonstrated its foldable write/phone device, the CPlus, saying it could ship within 2-3 years
The OPERA researchers says that ESIPT can be used to design completely new TADF materials, which could enable researchers to achieve a high performance and long-lasting emitter structure, as a new material family may expand the molecule design possibilities.
The company's first product is the OLED EyeCare Lamp, which uses an OLED panel to provide a healthy light source. The crowdfunding campaign is very close to reaching its goal of $120,000 HKD.
Wisechip demonstrated its latest flexible, transparent, hyperfluoresence and regular PMOLEDs
Audi unveiled its flagship luxuries sedan, the new Audi A8, which comes with OLED taillights (not clear if these are optional as was the case with the 2016 TT RS)
The company says its foldable displays could enter production within 1.5 years.
The European PI-SCALE project's R2R lines are now in place and researchers are producing 10-meter long patterned OLED lighting panels
The X9s and X9s plus are Android smartphones that adopt 5.5-inch (5.85-inch) AMOLED displays
Meizu's new high-end devices have a small 2-inch AMOLED display on the back (in addition to main 5.2-inch/5.7-inch Super AMOLED displays)
The Z2 Force is a shatterproof phone that features a 5.5-inch Quad-HD Flexible (plastic-based) AMOLED display
A luxury $2,500 smartwatch with a 1.4-inch 390x390 round AMOLED
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