Grasping the market opportunities of flexible OLED market Samsung Display launched A3 factory during the year

Samsung Display (Samsung Display) is located in the A3 production line in Asan, Chungcheongnam-do, South Korea. A new investment plan has been confirmed and will be issued before the end of April. Apple plans to launch iWatch, a smart watch with flexible organic electroluminescent diodes (OLEDs), in September, and Samsung's rival LG Display will launch its 8th generation OLED line in the second half of the year. If Samsung delays its investment, it will lose market opportunities.

According to reports, Samsung plans to launch the A3 plant in 2014 to capture the market opportunities in the flexible OLED market. The scale of new capital expenditure in the first phase of the A3 plant is estimated to be 2 trillion won (about 1.9 billion U.S. dollars). If the second and third phases of investment are added in the future, the total investment scale will be expanded to 6 trillion won. Samsung will be able to start production lines from October to November after equipment shipments and setup in April.

Researcher at Hyundai Securities said that Samsung Electronics has expanded its market leadership with high-end smartphones as its center, but it has been slowed by the saturation of the high-end mobile phone market. With the flexible OLED innovative smart phone design, it is expected to break through the bottleneck. After the Samsung monitor re-invests in the new A3 line, it is possible to launch a new smart phone.

Market analysis, Samsung Display A3 line is eager to start production in 2014, the first to ensure the panel, may be the preview Samsung's flagship smart phone Galaxy S6 and Galaxy Note 5 launched in 2015 will use the flexible OLED panel.

Samsung Display President Park Tung-Jian said in a press conference in February that the A3 production line investment plan will be implemented in 2014 and will be implemented in the first half of the year.

On the other hand, the requirements of third-party manufacturers have also accelerated the investment decision of Samsung Display. Samsung Display's third-party manufacturers said that if they delay the investment in the A3 production line, the cooperative manufacturers may fall into the dilemma of operating difficulties. Some co-operators have even expressed strong dissatisfaction with the argument that they will supply equipment to other countries such as the mainland without investing.

If the Samsung monitor launches equipment for the third-party equipment in April, it will take at least 6 months for the equipment to be installed and commissioned after storage. Therefore, it is estimated that the A3 production line can be started at the fastest time from October to November. Samsung Display will increase production yield through trials and will be mass-produced from January to February 2015.

The A3 line will mainly produce wearable devices such as smart watches and smart bracelets, as well as flexible OLED panels for curved phones. The production capacity is estimated to be 15,000 to 20,000 pieces per month per production line. If converted to annual production, it is equivalent to manufacturing 20 million 5~6吋 smart phones. The proportion of smart phones equipped with flexible OLEDs by Samsung Electronics will affect the output of Samsung monitors. In addition, in line with the growth rate of the global OLED TV market, the A3 factory will also produce large-size OLED TV panels.

On the other hand, LG Display plans to launch the new OLED production line M2 in the second half of 2014. After Samsung Display officially invests in the A3 production line, it will compete with LG. For the Korean equipment factory that has had difficulties in operating capital expenditures in the past few years, Samsung’s A3 production line equipment can be said to be a long-term drought.

Woori Investment Securities Researcher said that in order to differentiate from LCD, OLED investment should be developed in a flexible direction. Following the Lejin display, Samsung Display also launched an investment in OLED production lines, and the Korean panel factory is expected to lead the global market.

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