Samsung Display partially produces flexible OLED panels along with rigid OLED panels at its A2 line. However it only produces panels for iPhones at A3 line as technologies that Apple requested are different as the ones that are applied to A2 line.
If Samsung Display operates production lines for Apple at an operation rate of 100% with 100% yield, it is able to produce about 124 million 6-inch panels and 130 million 5.8-inch panels respectively in single year.
However it is heard that yield for panels that Apple requested is low due to high degree of technical difficulty. Industries believe that yields for Samsung Electronics’ panels and Apple’s panel are at least 80% and about 60% respectively.
If Samsung Display operates its lines at an operation rate of 100% with 60% yield, it is able to produce about 75 million 6-inch panels and 79 million 5.8-inch panels respectively. Considering the fact that yearly sales volume of iPhones is about 200 million and that production capacity of LG Display’s E6 line, which is going to be operated starting from second quarter of 2018, is only about 15,000 panels per month, it seems unlikely that entire 2018 iPhone series will have OLED panels.
In order to increase production capacity of 6th generation flexible OLED, Samsung Display is currently thinking about making additional investments into a new plant called A5 (tentative name). L7-1 line, which is converted from LCD to 6th generation flexible OLED, is currently being built to have production capacity of 30,000 to 45,000 panels per month. It is going to be operated starting from fourth quarter of this year.
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