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Worried About The Downturn In Apple's X Demand, Samsung Is Considering Stopping The Expansion Of OLED

Worried About The Downturn In Apple's X Demand, Samsung Is Considering Stopping The Expansion Of OLED

Jan 27, 2018

Last June, Samsung had planned to establish a "super OLED factory" in South Korea.


Samsung plans to invest in the new OLED plant 1 trillion won (about 5 billion 900 million yuan), a new device called the A5 in Chungnam, Asan, as part of the company's new giant OLED production facilities. The plant's capacity will be 30% higher than the A3 plant in China.


However, according to the Korean media The Bell, Samsung decided to reconsider its decision.


The company is reexamining its A5 plant's investment plan. Up to now, there seems to be no progress in the construction of the plant. A person who did not want to be named said: "the construction work in the factory area has not yet started. They are just digging the land."


The uncertainty of demand for the global smartphone market is the key reason for Samsung's decision to withdraw from the A5 plant.


So far, only Samsung and apple are the main customers of the Samsung display OLED panel. Samsung hopes to expand its capacity and focus on the needs of Chinese smartphone makers.


However, it does not seem to be sure whether the smartphone market has continued demand.


The demand for Apple's iPhone X is less than expected, and it also seems to affect Samsung's decision. Unlike the previous iPhone with liquid crystal displays, iPhone X uses Samsung's OLED panel.


It is expected that the supply of the OLED panel to apple in 2018 will bring about $22 billion (about 140 billion 200 million) of revenue to Samsung.


It is also reported that apple is trying to reduce its dependence on the Samsung OLED panel. Because the Apple Corp has invested in LG's business to create a high quality OLED panel for the upcoming iPhone model.


If this is true, both Samsung and LG will supply the OLED panel to apple this year.