Samsung intends to build the world’s largest plant for the production of OLED displays, according to The Investor, citing informed sources. This goes well with the fact that the new iPhone 8 is expected to be used screens on organic light emitting diodes.
Factory called the A5 will include two main buildings, located in the South Korean cities of Cheonan and Asan (province of chungcheongnam-do). The company plans to release monthly from 180 000 to 270 000 OLED panels, which is almost 30% more production capacity, the largest at the moment the factory Samsung — A3.
The volume of investments will amount to about $20 billion. If the process starts this year, the plant can operate at capacity in 2019.
Earlier this week it was reported that Apple may face shortage of iPhone 8 at the start due to problems with the production of OLED displays. Before the official announcement of the smartphone, scheduled for September, Samsung Display will be able to put only 3-4 million OLED panels. In this regard, there are concerns that Apple will not be the end of the year to sell 50-60 million iPhones 8, as previously predicted.
As expected, the new flagship will be equipped with 5.8-inch OLED display, wireless charging and will receive a case of glass and metal. It will be released in September alongside the iPhone 7s iPhone 7s Plus that you will settle for LCD screens.
At the moment Samsung Display continues to dominate the market OLED-displays. Analysts estimate the company’s share in segment displays for smartphones and tablets by the end of 2016 at 96.7%.
LG Display plans to oust Samsung in the global market of OLED displays for smartphones and has already taken concrete steps in this direction. The company has agreed to supply Chinese Xiaomi displays and talks on the same topic with other vendors from China.
LG Display expects to reach a monthly production volume of around 120 thousand OLED panels, which roughly corresponds to half of the present supply of such screens by Samsung Display.
Samsung representatives declined to comment on this information.