Bernstein visited Asia electronic supply chain, talked with 23 companies and industry experts, declared that "China syndrome", the factory spree upstream equipment industry is favorable, but excessive investment may make the OLED panel face big trouble in 2018.
The Motley Fool and Barron reported that part of the panel, the factory sprint OLED capacity steps beyond expectations, equipment and material business is the benefit from capital expenditure cycle OLED.
Semiconductor parts also have a similar situation, land factory invested heavily in 3D NAND, semiconductor equipment demand soared. Memory, the current supply of DRAM is still tight, 2017 DRAM quotes remain optimistic.
Bernstein warned that the land is too active expansion of production capacity, OLED fear of oversupply in the future. The report said that two weeks ago, Bernstein pointed out that the second generation of liquid crystal (LCD) and OLED capital spending surge in the second half of 2017 and 2018 will be a big problem. Visit to Asia also confirmed that China based panel makers are struggling to expand OLED capacity.
However, the current OLED panel is still hot. The report said that the second half of this year, Samsung is expected to ship 80 million sets of intelligent machine OLED panel to apple, OLED profit is better than expected, operating margin rose from 20% to 25%. Due to the concentration of OLED supply to Samsung Electronics and Apple, although China's smart phone OEM plant is willing to pay the price of the LCD panel to buy OLED, still not grab. Apple OLED contract is unconditional payment contract (Take - or - contract), flexible OLED panel price is $75 to $80, much higher than the $30 of hard OLED panel.
The Wall Street Journal (WSJ) reported on the Japanese version of the 7, according to people familiar with the details of the relationship (Sharp) revealed that SHARP plans to drop about 100 billion yen to expand the OLED panel production plan, plans in the next year (2018) OLED panel output increased to 30 thousand pieces of minimum Japan many plants, investment will be lower than in September last year the amount released by 74%, but this is mainly in order to catch up with Samsung, the orders of iPhone.