Samsung Display last year invested US$1 billion to set up an OLED panel module factory in Bac Ninh Province, Vietnam, which began operations in the first quarter of this year. Samsung Display will invest another US$3 billion on expanding its production capacity and increase production of various types of OLED panels.

In the past, Samsung Display’s OLED panels were mainly used as supplies for smart phones, and they were used for several types of Samsung smart phones. However, in addition to use for Samsung’s own brand, during the past two years, the panels have gradually been used as supplies for Mainland Chinese brands, including Huawei, Vivo, OPPO, and Meizu.

Nevertheless, the smart phone market has become gradually saturated, and other than in emerging markets, its growth rate is not as high as in the past. However, Samsung Display still chose to increase its production capacity for OLED panels. A major reason is that the market for wearable devices is experiencing rapid growth.

Because display screens with smaller dimensions, flexibility, and sensitivity to power consumption are required for wearable devices. OLED has become the top solution. Furthermore, it is rumored that the next generation iPhone will also use OLED display panels, and this will increase the potential demand for OLED display screens.

On the other hand, according to a patent application which been released few days ago, Samsung is currently developing a type of cellphone with a folding screen. If this product enters the market, it is expected to bring about a smart phone sales boom, and this may further boost the demand for AMOLED panels.

(TR/Phil Sweeney)