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Production of OLEDs for smartphones is proceeding at such a rapid pace that supply will outstrip demand by nearly a 2:1 ratio in 2020.
“A Gen 6 plant with a capacity of 15,000 sheets can produce 45 million 5.7” smartphone displays,” noted Dr. Robert Castellano, President of The Information Network. “In 2020, 1.5 billion smartphone panels will be produced, creating an oversupply situation based on 50% penetration of OLEDs for smartphones.”
Smartphone market growth has slowed since 2015. Shipment growth between 2020 and 2021 will be only be 2.8% to 1,745 smartphones sold, so the oversupply will continue beyond 2020.
On the bright side, while the OLED market for smartphones will be in overcapacity by the end of 2019, OLED for other applications, particularly for TVs, will be another opportunity. The OLED TV panel customer base is expanding -large-sized OLED panel shipments are projected to reach 1.6 million in 2017, up from 900,000 TVs in 2016 and 420,000 in 2015.
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