What They Say
DSCC reported that a recovery from the pandemic, combined with strong demand for OLEDs in smartphones, TVs and other devices, and coupled with capacity increases, will lead OLED production to grow 94% Y/Y in the second quarter of 2021. Growth in OLED input area for small & medium displays is expected to come in at 68% Y/Y, while growth in OLED TV input area will more than double at +134% Y/Y.
The capacity for LTPS LCD is still higher than for either flexible or rigid OLEDs, although overall capacity for OLED went past LTPS LCD in 2018. DSCC pointed out that JDI’s shutdown of Hakusan in mid-2019 took capacity away from LTPS LCD, but is returning under the management of Sharp. Expansion by CSOT Wuhan, Tianma Wuhan and Visionox Hefei will continue to increase flexible OLED capacity, while expansions at Everdisplay and JOLED are increasing rigid OLED capacity in 2021.
The firm also reported actual inputs, rather than capacity, and highlighted the stronger inputs in the second half of the year, largely influenced by Apple’s smartphone launches. It also reported utilisation for the different technologies. It highlighted that the highest utilisation is by Samsung’s A3 fab, the largest flexible fab. A3 ran at 94% utilization in the second half of 2020, and DSCC expects it to run even higher at 97% in the second half of 2021.
The utilisation chart on the site also shows OLED TV utilisation and that highlights that last year LGD saw some big swings in utilisation as its Chinese fab came on line, but is now over 90% again.
What We Think
It’s worth a look at the site if you are interested in the utilisation data, which is highly variable and seasonal although the longer term trend of the average is towards full utilisation, hence the current positive mood among panel suppliers. (BR)
