Samsung Display to Ramp up OLED Mobile Manufacturing Capacity to 550M by 2017

Samsung Display plans to raise small to mid-sized OLED panels production by 35% in 2017 to meet surging OLED panel demands from Chinese smartphone manufacturers, Korean media Pulse cited a Samsung Display official saying.

The Korean display maker aims to raise shipment of small to medium-sized OLED panels to 550 million units by 2017, an increased output of 100 million units compared to this year, said the official.

Panel shipment to Chinese companies exceeded 28% of the company’s total OLED production last month, said the same official.

Samsung Display, a main supplier of small to mid-sized OLED panels on the market, has seen uptick in orders from Apple, and the world’s third largest smartphone maker Huawei Technologies. Samsung Electronics is one of Samsung Display’s largest customer, but will be cutting reliance on the parent company from 68% to 50%, anticipated the official.

According to IHS Markit, OLED panels amounted less than 20% of the 9-inch or smaller display market in sales last year, but its shares were up 35.1% at the end of June 2016.

OLED is projected to take down 52% market share by 2020, placing it on par with mainstream LCD panels.

Chinese smartphone manufacturers will be raising their acquisition of OLED panels in 2017, with forecasted surge of 70% OLED panel purchases to about 85 million units this year compared to last year. China’s largest smartphone maker Huawei will scale up OLED smartphones from 2% to 8% in its smartphone portfolio. The second biggest smartphone maker Oppo is projected to raise OLED smartphones to 39%, while third place Vivo is increasing to 35%.

Samsung Display is the most prominent player in small to medium sized OLED panels, with a 95% global market share. The company’s market share is projected to be further expanded in the market as LG Display that has supplied LCD panels to Apple, Japan Display and Sharp for its iPhones have all decided to use OLED panels for future iPhone models.

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