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AMOLED Market Potential Is Enormous

AMOLED Market Potential Is Enormous

May 12, 2017

Huaxing Electric and Wuhan formally signed the sixth generation of LTPS AMOLED production line project cooperation agreement, Tianma sixth generation LTPS AMOLED production line in Wuhan successfully lit AMOLED products, to become the two things happened in China's OLED industry for nearly a month.

Nowadays, the AMOLED technology is becoming more and more obvious in the small and medium size application area, which makes the global panel manufacturers actively invest in the 6th generation AMOLED production line. According to statistics, the current global construction and planning of OLED production line up to 15, of which China has 9. In addition, there are still manufacturers in our country planning to build the line. Experts call, should rationally invest AMOLED, improve our country's industrial chain upstream and downstream layout, to avoid technology, talent, patents and other aspects of the risk.

15 AMOLED production line will be produced in three years

According to incomplete statistics, in addition to the global layout of the LTPS production line, there are also 15 OLED production lines are under construction and planning. 2017, there will be 3 small and medium-sized OLED production line to achieve the volume of production, the third quarter measurements of the production of Samsung in Korea Chonan, LGD in Korea Gumi the 6th generation production line, Shun Lee Huizhou 4. The 5 generation line will be measured in the second quarter. 2018, there will be 6 production lines to achieve mass production, in which the first quarter measured the production of the Beijing Oriental Chengdu 6 generation line and Samsung in Korea Chonan 6 generation OLED production line, the second quarter measured the production of the Tianma Wuhan 6-generation line, LGD in Korea Phju 6 generations, sharp in Japan Sakai 6 generations and JDI in Japan Hakusan 6 generation Lines (planning). 2019, there are also 6 OLED production lines, respectively, the Beijing Oriental Mianyang 6 generation line will be measured in the second quarter, and the Hui Shanghai 6 generation line will be measured in the second quarter, Victoria Grainger 6 generations of Connaught Line will be measured in the second quarter, Flexographic Shenzhen 5. The 5-generation line will be measured in the first quarter, and the star photoelectric Wuhan 6 generation line will be measured in the third quarter (planning), and the letter in Anhui 6 generation line will be measured in the fourth quarter (planning).

According to reporters, in addition to the above identified production lines, our manufacturers are planning other AMOLED production lines.

BOE Technology Group Co., Ltd. Vice chairman, CEO Chen Yanshun said, in the OLED layout, Beijing Oriental will focus on the layout of small-size flexible AMOLED production line (Chengdu G6, Mianyang G6). Now the emergence of OLED technology, the small and medium size of the field of unstoppable technology trends, which will become a new opportunity for our enterprises. 2020 OLED shipments expected to break through 800 million tablets, expected 2015 ~2021 year AMOLED shipments annual compound growth rate will be maintained at around 25%%, will become the mainstream of mobile phone market in the future.

Now the global panel manufacturers are in the active layout of AMOLED technology to seize the right of discourse. However, we note that in addition to the panel manufacturers, many new entrants also began to join the local government layout OLED market. According to reporters, Heilongjiang Daqing Yingao technology also announced that it will invest 62 billion yuan to build OLED production line, causing concern in the industry.

The Chinese Academy of Sciences, Ouyang Zhong Can, said that OLED as a new display technology, in recent years, strong growth momentum, the global panel manufacturers are also in the active layout. OLED in small and medium size application in the field of alternative advantages, in recent years, China's investment in preparation or known as the AMOLED volume production line has more than 10 more, each line investment size of tens of billions of yuan. But how many of them can survive by virtue of their technological prowess?

For the OLED panel production line of large-scale investment, many industry experts also expressed concern that the rapid expansion of AMOLED capacity will have some hidden dangers, especially in three-year OLED capacity will concentrate on the outbreak, or will trigger the risk of overcapacity, affecting the healthy development of the industry.

Although many panel vendors are laying out in the AMOLED field, shipments are still very small compared with Samsung. In the AMOLED handset panel market, Samsung occupies almost 99% of its share and owns a large number of patents and technologies. So in this case, China's "march" investment in the construction of 6 generations of AMOLED production line, will face a great risk, in addition to patents, the most important is the production of insufficient experience and the risk of blind investment.

Group Wisdom Consulting Vice general manager Li Yaqin told the author, flexible OLED production experience is blank. In the absence of successful production experience, the continuous new production line, climbing time is long, the quantity of production is difficult, the yield is difficult to ascend. This will bring enormous funds, personnel, profit pressure, especially experienced flexible AMOLED technical staff, will lead to the panel factory climbing time slow, good quality is difficult to upgrade, there is a loss risk.

It can be said that the current Chinese OLED industry is in the opportunity and challenge of the development of the key phase, on the one hand industry from LCD to OLED evolution of the trend is increasingly evident, in China at this time to accelerate the layout of OLED will be expected to break the Japanese and South Korea's technology monopoly, OLED materials, devices, technology and other aspects of a major breakthrough; on the one hand, the global OLED market competition pattern, Korean enterprises still obvious advantages, China OLED industry chain is relatively weak, The global OLED industry competition is no longer a single technology or enterprise competition, but the overall competition of the industry chain, the Chinese OLED industry want to grasp the strategic opportunity to achieve "corner overtaking", to show the world in the power, to accelerate the construction of industrial new ecology, maximize the effect of industrial synergy.

However, at present, China's OLED industry chain upstream supporting is not perfect. Ouyang Zhong Can Academician said that our country should break through the key technology bottleneck of OLED, perfect industrial chain matching, can accelerate the pace of industrialization.

Kunshan Dimensional Connaught Technology Co., Ltd. General manager Gao Yudi in an interview with the author said that the current OLED industry chain model single, upper, medium and downstream vendors to cooperate more elementary, the future should build a complete ecosystem. Around the end users and market demand, panel manufacturers, upstream raw materials and equipment manufacturers and downstream terminals will be more diversified cooperation and exchanges. At the same time, the panel manufacturers can transform the advanced technology into the advanced product, provide a diversified technology program for the end manufacturers, and bring about more new technologies and fields, and make the industrial synergy value play the most.

In addition, Ouyang Zhong Can Academician also suggested that our country should adjust the import and export tariff rate, amend the OLED display device production enterprises import materials and major equipment tax preferential policy catalogue, to safeguard industrial safety.