According to report from Korea, Samsung Display has established a dedicated organization to head its new 8.6-Gen IT OLED Production line, and has started to order equipment. Samsung is converting an existing LCD line in Asan to OLED production, with an estimated cost of $3.1 billion.
According to the report, SDC's decision to have a dedicated organization was made to give that team independence from the company's current small-area (smartphone/wearable) focused business and TV-focused business.
Samsung aims to be the first company to produce IT AMOLED displays in a 8.6-Gen fab. Display makers are looking for Apple's switch to OLED displays in its future tablets and laptops, which will likely cause a stir in the market and increase demand for IT OLED displays dramatically. It is reported that Apple will begin using OLEDs in its iPad Pro devices next year, and Omdia estimates that Apple will start using OLEDs in laptops (MacBook Pro at first) in 2026.
A few days ago it was reported that the slowdown in Apple's laptop sales is a cause of worry for OLED producers, who have delayed the plans to build new IT-dedicated fabs. The main problem for the OLED makers is that the slowdown in Apple's sales may drive Apple to want to low the price of the laptop displays, which would put a stress on the profitability of new OLED fabs.
It now seems that Samsung has finally decided to take the risk and invest in IT OLED production. This could be a wise move as it will take some time to construct the fab and ramp up production and by then demand for IT displays may be on the rise again. Of course this is a risk by Samsung and a bet that Apple and other laptop and tablet makers will indeed switch to OLED displays, which are more expensive than the currently-used LCDs.
