Samsung Considering Building World’s Largest OLED Factory

Samsung is currently the market leader in the production of OLED displays. The company supplies OLED displays to almost all smartphone OEMs out there and has a market share of 95%. And in a bid to fuel the ever increasing demand of OLED panels, Samsung now plans on constructing the world’s biggest OLED plant.

The plant would have 30 percent more production capacity than its currently largest A3 display factory. Tentatively called A5, the factory would churn out the company’s sixth generation OLED panels at a production rate 270,000 panels per month, up from the 180,000 panels that Samsung’s A3 factory currently produces. The new plant will be located in Cheonan and Asan.

Samsung is hoping to start the construction work on the factory from the second half of this year, and if everything goes according to its timeline, the plant would be operational from 2019. It is estimated that Samsung would need to make an investment of $1.75 billion just for the construction of the plant, with an additional $14 billion required in equipment alone to achieve a production capacity of 180,000 panels per month.

The company is also contemplating opening two factories totalling production of 270,000 units per month. This move will also see the company make an investment of over $21 billion, though the factories will be able to start producing 30,000 OLED panels from the second half of this year itself.

The report from ET News also states that Samsung started extending its A3 plant from H2 2015 itself due to a huge number of OLED panel orders placed by Apple. This process is still ongoing and it is expected that the work will be completed by October this year.

Reports have now widely confirmed that Apple will be using OLED display on the iPhone 8 which it will be sourcing from Samsung. The company wanted to use OLED displays on all the three iPhone variants it would be launching this year, but could not do so due to supply constraints. The company, however, plans on switching to OLED displays completely across its iPhone lineup in 2019 and has already been looking for additional suppliers.

[Via ET News]