South Korean media reported that Samsung Display is expected to invest in the 8.7-generation line to produce OLED panels for IT devices such as tablets and laptops. Industry sources say Samsung Display is likely to make a new investment in its A5 plant in Asan, South Chungcheong Province, starting in May.

Industry sources said Samsung Display is considering investing in a new 8.7-generation OLED panel production line on top of its existing LCD panel production line. The expected date for ordering equipment is the second quarter of this year. It is not clear which production line the equipment will go into, but it is expected to use the L8-2 line, which was discontinued last June.

The 8.7 generation OLED panel has a Mother Glass size of 2290mmx2620mm, which is larger than the current sixth generation (1500mmx1850mm). If the original panel is large, the production volume will be higher than before when the panel is divided into a specific standard OLED panel such as a smartphone, and the scrap part will be reduced, resulting in higher chamfering efficiency and productivity.

OLED panels were originally mainly used in smartphones, but in recent years, Apple and others have announced that they will use OLED in IT devices such as laptops and tablets, so the small and medium size market is expected to expand further. Apple is expected to use OLED in its iPadPro tablet next year and its MacBook laptop in 2026.

Market Research firm UBI Research forecasts that the IT OLED market will grow at a compound annual growth rate (CAGR) of 39 percent from last year to 2027.

Partners who develop display process equipment are also expected to benefit when Samsung Display officially invests in the production line for the 8.7 generation OLED panel. On the evaporator side, Japanese company Canon is expected to take the bulk of the supply and is also likely to order equipment from LCD, WonikIPS and Roche Systems. SFA, which supplies logistics equipment, is also a beneficiary.

It will also be interesting to see if investment in the suspended A5 new plant will resume.

Industry observers say Samsung Display will soon announce plans to invest in the A5 plant in Asan 2 complex in South Chungcheong Province in May. The size and purpose of the production line have not been finalized, but some predict the possibility of building a production line for QD-OLED panels.

UBI Research expects Samsung Display to ship 1.5 million units of QD-OLED this year, significantly lower than LG Display's 7.6 million units of WOLED. After launching QD-OLED TVS in Europe and North America last year, Samsung Electronics, which is a customer of Samsung Display, began expanding its production into the domestic market this year. Some observers say that the line is aimed at medium size products such as displays, which are Apple s main products.

Market expectations are emerging based on some resumption of investment in the A5, but it is not yet certain. This is because A5 has tried and failed to confirm the investment several times. Construction of A5 was originally scheduled to begin in July 2017, but investment was delayed due to reduced demand due to COVID-19 and other factors.

"In terms of small screens, the penetration rate of Samsung Display's major customers, including Apple, is steadily increasing; In terms of large screens, Samsung Electronics launched QD-OLED TVS in 2018 and is expanding its base in Korea. As the display industry environment is expected to improve in the future, we expect investment in the display panel industry to come out."

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