Jan 13, 2017: Samsung Display, the world’s largest supplier of OLED displays for the mobile devices, is looking to invest $2 billion in its OLED production line in Vietnam. Currently, the company holds more than 90% of the global market of OLED displays for the mobile devices.
With OLED display technology being widely adopted by an a number of smartphone manufacturers, Samsung Display is gearing up to meet the increasing demand. Global smartphone makers like Apple, Huawei, Oppo and Vivo have all adopted OLED technology, hence Chinese and Japanese companied are also making heavy investments in OLED productions.
About 50% of Samsung smartphones sold across the globe are manufactured in its two plants in Vietnam. With growing demand, Samsung Display wants to expand its production capacity for OLED panels in Vietman.
According to industry reports, Samsung Display will be Apple’s sole or the main supplier of OLED panels, which is one of the reasons for the company to increase OLED production capacity in Vietnam.
About the $2 billion investment, Samsung is expected to finalize the deal in the first quarter of 2017.
Dominance of Samsung and LG
Samsung Display and LG Display is, however, expected to dominant the OLED panels market for the next five years, despite aggressive investment by Japanese and Chinese firms in the same domain.
Samsung’s rival LG Display is also shifting its investment from LCD to OLEDs for smartphone panels. LG is establishing OLED production facilities in Gumi and Paju with a total investment of 3.5 trillion won. LG is also expected to supply OLEDs to Apple from 2018.
By 2019, it is estimated that 42% of total smartphones in the global market will use OLED panels, according to market research firm IHS Markit.