Apple’s plan to adopt OLED panels for its next iPhone series has apparently
led to a fierce competition between OLED makers. According to
The Wall Street Journal, sources close to the matter confirmed that Japan’s Sharp will invest around 100 billion yen (USD 878 million) to expand OLED production to compete with its rival Samsung Electronics Co,.
(Photo: Wikipedia)
The latest figure is 74% larger than the amount Sharp announced last September. This expansion plan is expected to increase Sharp’s total production capacity in its factories across Japan to 30,000 panels per month by 2018.
Sharp announced on September 30th 2016 that it will invest around 57.4 billion yen (USD 570 million) to build OLED pilot lines in Osaka and in the Mie prefecture, which are due to begin production in the second quarter of 2018 (between April and June).
The Japanese company stated that the main purpose of building these pilot lines is to expand production know-how for mass production and develop technologies that can decrease defect rate. The pilot lines will also conduct small-scale production and make shipments to its customers.
It is reported that before the acquisition of Sharp in 2016, Taiwan’s Hon Hai Precision Industry had planned to invest 200 billion yen to build OLED plants. However, sources later revealed that after complete analysis, Hon Hai estimated the actual cost of building these plants would be 600 billion yen, three times higher than the initial estimation. As a result, the company decided to expand production capacity in the proposed OLED pilot lines. .
Sharp plans to produce around 15 million OLED panels for smartphones every year. However, Research firm Display Supply Chain Consultants (DSCC) points out that since overall smartphone shipment stands at several hundred million units per year, Sharp obviously needs to expand production capacity to stay ahead of the game. DSCC also estimates that by 2020, demand for mobile OLED panels will hit 1 billion, a twofold increase compared to the current number.
Share of Sharp soared 5.9% to 377 yen on the 7th, closing at a 37-month high and also marking a six-day winning streak.
Rumors have been swirling about Apple’s new iPhones that are set to launch in September 2017. Among the three new models, one is expected to feature an OLED panel, and the other two will stick to LCD ones.
CN
TW
EN
