According to industry sources on Wednesday, Samsung Display's Q1 line in Asan, South Chungcheong Province is operating at an average operating rate of 90 percent. 34-inch, 49-inch, 55-inch, 65-inch, and 77-inch QD-OLED panels are manufactured here.
Samsung Display's manufacturing costs for QD-OLED panels are expected to fall this year thanks to improved yield (the proportion of finished products without defects) and plant utilization. Display Supply Chain Consultants (DSCC), a market research firm, recently analyzed that Samsung Display's manufacturing costs for 65-inch QD-OLED panels will drop about 30 percent this year from last year. Last year, the panel cost just under $1,100 to make, but this year it will likely fall to about $750.
At the 2023 OLED Korea Conference held at the Central Park Hotel in Songdo, Incheon, Samsung Display announced that the yield of its QD-OLED panel exceeded 90 percent.
Image from Samsung
Samsung Display's QD-OLED plant utilization rate increased from 77 percent last year to 89 percent this year, and its production has also increased, according to DSCC. The average yield of 65-inch QD-OLEDs has risen from 68% last year to 84% this year.
From next year, however, improvements in QD-OLED costs are likely to be limited, the DSCC said. This is because yields have risen to comparable levels and, coupled with improved utilization, there is little room for cost reduction. Samsung's 65-inch QD-OLED panel manufacturing costs will most likely remain above $600 from this year to 2026 (based on the 8.5-generation substrate).
LG Display's white (W)-OLED is likely to be in a similar situation, but its cost competitiveness is much higher than Samsung Display's.
Manufacturing costs for the 55-inch W-OLED produced at LG Display's 8.5-generation OLED plant in Guangzhou, China, are expected to fall below $400 this year, from a high of $400 last year to as high as $300 this year. Manufacturing costs are expected to approach $300 next year and reach more than $200 by 2026.
In the case of the 65-inch W-OLED made in Guangzhou, China, manufacturing costs could fall to about $500 this year. Compared with the 65-inch QD-OLED produced by South Korea's Samsung Display, the cost has been reduced by more than 30 percent. This year's 65-inch W-OLED panels produced in Paju are estimated to cost about $650 to manufacture.
Meanwhile, Samsung Electronics is expected to join hands with LG Display soon to increase sales of OLED TVS. Samsung Electronics' TV business strategy is expected to change as Chairman Lee Jae-yong shows strong interest in the OLED TV business.
Samsung Electronics and LG Display have recently resumed talks on the supply of W-OLED panels for TVS. If the two companies join forces, LG Display's W-OLED panels are likely to be used in TVS to be released by Samsung Electronics next year.
"Given that talks between the two companies were overturned and then restarted in the past, we think there is a good chance of a deal this time, and the chances of acceptance will be higher than before," an industry insider said.
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