100 billion investment to catch up with iPhone 8 to provoke OLED mobile phone screen world war

Electronic enthusiasts eight o'clock: From the iPhone 8, OLED screen will become the standard for high-end mobile phones. Thanks to Apple's good market-oriented role, more and more mobile phone manufacturers will invest in OLED display. However, due to the immature development of the industrial chain, Samsung's small and medium-sized OLED screens are unique. In the case of a shortage of supply, the addition of Apple's big singles seems to have intensified the situation of gluttony. However, according to industry insiders, this year's OLED screen competition will not only intensify, but also force Chinese screen manufacturers to win at the starting line. Four mobile phone manufacturers whale up 93% of production capacity

In 2016, after the release of Galaxy S6 Edge, the stunning curved screen design not only brought beautiful sales transcripts to Samsung, but also won a lot of praise for Samsung. Since then, domestic mobile phone manufacturers have become more interested in OLED screens. A variety of OLED display phones, such as OPPO's R series, vivo X series, Huawei P9, Xiaomi note2 and other models all contain OLED display configuration models.

The biggest advantage of OLED screens is self-illumination and flexible surfaces compared to LCD screens that are widely used in mobile phones today. Under the premise that the power supply capacity of the mobile phone cannot be innovated, the mobile phone manufacturers are committed to reducing energy consumption and improving the endurance of the mobile phone. The OLED display is an organic electric excitation photodiode, does not require a backlight, can self-illuminate, and has low power consumption. Moreover, the flexible curved screen has good ductility, giving mobile phone manufacturers a broader mobile ID design space. In addition, the OLED screen material is light and thin, the touch sensitivity is higher, and the color performance is more vivid.

With the natural advantage, the market for OLED screens is consistently optimistic. According to LCD Supply Market Consultant DSCC (Display Supply Chain Consultants), there will be 525 million smartphones in the world using AMOLED panels in 2017, a year-on-year increase of 42%. In 2021, there will be 1.2 billion smartphones using AMOLED in the world, including More than half are for Samsung and Apple. However, unfortunately, OLED demand is strong, but the industry chain has not developed, making Samsung a big one.

DSCC said that in 2016, Samsung's global AMOLED mobile phone panel shipments accounted for 97% of the total, and in 2017 it was 96%. The OLED market is a veritable seller market. The reason for this situation, mobile phone analyst Pan Jiutang believes that in addition to Samsung's early layout, other mobile phone manufacturers such as LG Display are betting on TV OLED display, although Japanese screen manufacturers have technology, but due to poor financial situation Can turn to the mobile phone OLED panel in time.

"The AMOLED screen was particularly lacking last year. The high-end models of various manufacturers want to use the AMOLED screen, but last year OPPO and vivo both sold far more than expected, and demand exceeded supply." Pan Jiutang said. This year, in addition to domestic mobile phone manufacturers to eat AMOLED screen, Apple also added. According to the "Nikkei News" news, Apple has placed a production contract for 70 million OLED screens with Samsung Electronics, digesting 14% of Samsung's production capacity. In addition, the mobile phone consumption of its own mobile phone consumes 56% of the production capacity, leaving only 30% of the production capacity of domestic mobile phone manufacturers, of which OPPO and vivo respectively have 13% and 10% capacity. In other words, these four mobile phone manufacturers accounted for 93% of Samsung's OLED shipments.

Samsung "catching people to supply"

Too many orders, Samsung plans to expand the OLED screen production line.

According to the latest news, Samsung Display has also signed agreements with a number of device manufacturers to replace existing LCD screen production lines with OLED screen production lines. It is estimated that it will invest about 3 trillion won to expand its production line. It is expected to produce 30,000 sixth-generation OLED panels per month starting from the fourth quarter. Samsung Display also plans to invest 3 trillion won to 4 trillion won to expand the A3 flexible OLED panel production plant. By the end of 2017, the A3 flexible OLED panel production capacity will increase from the current monthly 30,000 to 45,000 blocks to 120,000.

"The production line for Apple is separate from other manufacturers, so Apple's participation actually has little effect on OV." Pan Jiutang analyzed, "The remaining 7% of the relationship between Jin Li and Samsung is good. Meizu has a processor and memory. It is bought from Samsung and can also get a certain amount of panel supply. However, they are used in high-end models, and the amount is not large, Samsung can still meet."

However, Huawei and Xiaomi, two big salespeople, have a very delicate relationship with Samsung. "Millet fell out with Samsung in the first half of last year. Xiaomi note 2 was originally released in the first half of last year, using Samsung AMOLED screen, but did not deal with Samsung when purchasing, resulting in the release of Xiaomi note2 last October, The supplier of OLED screens was replaced by LG.

"Huawei is different from Apple. It is Samsung's direct competitor. Originally, the high-end market of Android mobile phones in China was monopolized by Samsung, but now Huawei has seized a lot of market share. Samsung is certainly not willing to supply Huawei." Pan Jiutang said that because of Samsung Huawei's P9 Pro, which had already used the OLED screen, was once out of stock. This year, Huawei P10 directly canceled the OLED version of the model. Lack of Samsung's supply, Huawei has found another way out, and has cooperated with BOE to lay out OLED displays.

Domestic panel factory 100 billion bet OLED

Apple's LCD panel suppliers have at least three options, but this time only one Samsung can supply large-scale OLED panels. In order to solve the problem of insufficient supply, there is news that there will be three versions of the iPhone 8 this year, and only one of them is an OLED screen. Samsung's dominant market situation is difficult to change in the short term. "Because it used to be only for Samsung manufacturers, many OLED upstream materials and key production equipment supply is not only in short supply, but also may generate enterprises for Samsung investment, holding, other screens. It is difficult for manufacturers to copy quickly. Pan said that at least until the end of 2018 and early 2019, the tight supply of OLED screens will be alleviated. According to DSCC estimates, LG Display will break the situation and join the ranks of OLED panel suppliers.

The screen market, which has long been monopolized by Japan and South Korea, has also caused Chinese manufacturers to stand on the same starting line with Japan and South Korea due to the rise of OLED panels. In May 2016, the National Development and Reform Commission issued the "Notice of the Ministry of Industry and Information Technology of the Ministry of Industry and Information Technology on Implementing Major Engineering Packages for the Upgrading of Manufacturing Industries", which clearly stated that it focuses on the development of low temperature polysilicon (LTPS), oxide (Oxide), A new generation of mass production technology, such as organic light-emitting semiconductor display (AMOLED), to build a high-generation production line. In the case of favorable policies and market conditions, OLED panel companies have accelerated the pace of OLED panel production lines.

The fast-moving BOE, the 6th generation AMOLED production line project of Chengdu BOE launched in May 2015 is expected to be put into operation this year, and will be supplied in large quantities in 2018. The 6th generation AMOLED flexible display panel production line of BOE Mianyang, which was newly built in December 2016, is expected to be 2019. It is put into production every year. However, DSCC estimates that BOE will have a chance to stabilize supply at least until 2020. Even so, BOE has great hopes of winning the candidate for Apple's third supplier.

In addition to BOE, domestic OLED panel manufacturers and Huiguang, Shenzhen Tianma, Huaxing Optoelectronics, and Guoxian Optoelectronics have also accelerated the investment pace of the 6th generation LTPS-AMOLED panel. Since 2016, domestic panel makers have invested more than 160 billion yuan in the production of 6 generations of AMOLED panel production lines. DSCC also believes that in the future, in the AMOLED market, except for Samsung and LG Display, the third to seventh places may be Chinese manufacturers.

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