AMOLED Panel Capacity to Grow 19% in 2016
March 15, 2016 | TrendForceEstimated reading time: 2 minutes
Brand companies in the global smartphone market have stepped up their search for novel designs and higher hardware specs to better compete in the slow-growth environment. One of the high-end components that have attracted brand companies’ attention is AMOLED panel for smartphone displays. In addition to being very thin and light, AMOLED panels are flexible enough to accommodate innovative designs as well as offering high color saturation. WitsView, a division of TrendForce, estimates that the global AMOLED panel production capacity by area will reach 7.9 million square meters in 2016, representing a 19.1% year-on-year increase. As panel makers worldwide continue to expand their AMOLED production, the total capacity for 2018 is forecast at 14.7 million square meters.
Currently, Samsung Display Corp. (SDC) is the world’s largest supplier of AMOLED panels. WitsView Senior Research Manager Boyce Fan said that SDC previously produced AMOLED panels to satisfy the demand from the Samsung brand group. However, SDC’s capacity outstripped Samsung’s demand in 2015. As a result, SDC increased its sales of AMOLED panels to other smartphone brands, especially the rising Chinese vendors. External customers accounted for 20% of SDC’s total AMOLED sales in 2015 owing to the supplier’s competitive pricing and rising market acceptance.
The AMOLED market is also watching closely at the developmental direction of Apple’s products. “Many panel makers have started to focus on their AMOLED panel production because there is an increasing likelihood of Apple adopting this technology for its next iPhone,” noted Fan. “Also, an AMOLED panel requires an LTPS backplane. The panel industry has rapidly built up its LTPS capacity in the past few years, leading to the risk of oversupply. Hence, developing the AMOLED market creates new opportunities for the panel makers and can help consume excess LTPS capacity.”
For a long time, the global AMOLED production has been concentrated in South Korea. SDC is the leading manufacturer of AMOLED panels for small- and medium-size devices, while LG Display (LGD), which has focused on applying this technology to TVs, is the top supplier of large-size AMOLED panels. However, WitsView believes the new entrants to the market will be able to gradually catch up to the established suppliers. The South Korean panel makers will see their representation in the global AMOLED capacity fall from 95% in 2015 to 76% in 2018. Chinese panel makers, which have substantial capital advantage, will be able to expand their control of the total capacity from 4% to 19% during the same period.
Fan added: “Rigid, flat AMOLED panels have been around the market for a while, and they are not much different from the current TFT-LCD panels in terms of appearance. Most panel makers are therefore betting on flexible AMOLED panels as they expect greater potential demand for this technology. The share of AMOLED capacity used to make flexible panels is projected to rise sharply as suppliers concentrate on developing these products – from just 13% this year to 44% in 2018.”
Suggested Items
IDC Forecasts Slower Growth for Global Telecommunications Services Market: Could AI Help Telcos to Maintain Healthy Margins?
05/08/2024 | IDCWorldwide spending on Telecom Services and Pay TV Services reached $1,509 billion in 2023, an increase of 2.1% over 2022, according to the International Data Corporation (IDC) Worldwide Semiannual Telecom Services Tracker.
Simbe Partners with Plexus to Scale Manufacturing and Meet Global Retail Demand
05/08/2024 | Globe NewswireSimbe, the leading provider of Store Intelligence™ solutions that increase retailer performance through unprecedented visibility and insights, today announced a partnership with Plexus Corp. to bring its best-in-class retail robotics-as-a-service to market quickly and at global scale.
IDTechEx Discusses Low-Loss Materials: The Enabler of Future Connected Vehicles?
05/06/2024 | IDTechExFuture connected vehicles will offer future drivers a safer, smoother, and more convenient driving experience. Not only will drivers get access to more navigation and entertainment options, but they will also gain access to safety technologies that will potentially reduce accidents, improve congestion, and reduce emissions globally by allowing vehicle safety systems to communicate with each other and with city traffic infrastructure.
HBM Prices to Increase by 5–10% in 2025, Accounting for Over 30% of Total DRAM Value
05/06/2024 | TrendForceAvril Wu, TrendForce Senior Research Vice President, reports that the HBM market is poised for robust growth, driven by significant pricing premiums and increased capacity needs for AI chips.
Tablet Shipments Show Signs of Recovery in Q1 2024
05/06/2024 | IDCAfter more than two years of decline, worldwide tablet shipments posted modest year-over-year growth of 0.5% in the first quarter of 2024 (1Q24), totaling 30.8 million units, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker.