OLED – organic light-emitting diode – has been widely accepted and viewed as the next generation in screen technology. Being proven so far as one of the most adept at delivering reliable panels, Samsung Display is geared up to start with the world’s largest OLED plant in South Korea, which will have the capacity to produce more than the current capacity by 30 percent.
The company’s strategy is to compete with this next generation technology in the display market before any other player acquires significant market share.
According to a recent update, Samsung Display has the final plans in place for constructing the next generation plant called A5 (tentative name) in Cheonan and Asan, which will have the capacity to produce a ballpark figure of 180,000 panels per month, eventually going up to 270,000 panels per month.
Since the new plant is projected to be on a larger scale, it requires a huge investment of more than $1.75 billion for construction, and $14.0 billion for equipment for the plant to produce 180,000 panels per month. It is anticipated to start mass production in the facility by 2019, which will be decided at the upcoming board meet.
The target is to increase the production capacity well in advance of Chinese companies gaining the technical knowhow to produce foldable screens. If China is able to enter the market, it’s likely to turn down the price of the display panels to a much lower rate.
The report from ETNews states:
”If Samsung Display greatly increases its output, it can reduce the price further”.
If it secures output, technologies and price before new businesses emerge on a full-scale, it can create an enormous entry barrier.
Samsung is currently working on large orders of OLEDs from Apple and Samsung Electronics. Samsung Display has secured production of up to 135,000 panels per month over the span of the next two years. It is also working towards expanding its A3 plant to support the production increase. This has created a situation where it can push other businesses with its game of hawk-dove without having to wait until 2020, for the Chinese businesses to start mass-produce of OLEDs.