Invests 11.6 Billion US Dollars in OLED for Samsung and LG for iPhone

LG Display and Samsung Display will invest 11.6 billion U.S. dollars in flexible OLED panels this year to win new orders for Apple's iPhone. Analysts said that this investment has created a record high, and the battle between the two global panel giants in the flexible OLED market has begun.

According to an OLED industry news report on October 30, Samsung Display will add 4.47 billion U.S. dollars to OLED in the fourth quarter of this year, increasing the total investment in 2016 to 9.7 billion U.S. dollars. In addition, LG is expected to invest approximately US$4.5 billion in the OLED panel sector.

Samsung Display currently accounts for 95% of the global market for small and medium sized OLED panels. LG Display followed suit, and they also decided to slam large-scale flexible OLED panels to win new orders for Apple's next-generation iPhone.

In addition to the retina LCD, Apple is planning to use flexible OLED panels starting with the iPhone 8, and new products are expected to be available in the second quarter of next year. The display industry predicts that more than half of all iPhones will use OLED panels since 2018.

The iPhone is currently the best-selling high-end smartphone product in the world, followed by Samsung’s Galaxy. Even if only half of iPhone models use OLED panels, Apple will need to order about 100 million OLED panels each year. It is reported that this is why Samsung Didplay is able to obtain an exclusive OLED panel for Apple's iPhone 8 next year.

To this end, Samsung Display will expand the production of its A3 production line from the current 15,000 per month to 70,000 per month by the end of the first half of next year. Each month, 70,000 units are equivalent to 170 million 5.5-inch display panels per year.

When LG Display is put into operation at its factory in Gumi, South Korea, they will begin mass production of flexible OLED panels in the first half of next year. According to sources, LG Display is currently seeking orders for OLED panels for the Apple iPhone SE model.

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