What They Say
The Elec has reported that Samsung Display Corp (SDC) is taking some time to consider whether to invest to develop more capacity for its new QD-OLED displays and will not make a decision until the second half of the year. The publication also said that a big obstacle to a quick decision is the low yield rate of panels, which it puts at 30% for ‘front end’ processes including deposition, and even less including back-end processes such as modularization.
If a capacity expansion was planned, it would take a couple of years to get to mass production.
The Elec reports that SDC has a target of 1 million TV and monitor panels this year, which, the site calculates, would suggest a yield of 70%.
An alternative, the Elec said, that the firm could move to QNED technology instead of expanding QD-OLED. (Samsung Display completes QNED structure development and Are Quantum Nano Emitting Diodes (QNEDs) the Next Big Thing?)
What We Think
The only surprising thing and news here is the yield rate, I think. However, SDC has been choosing difficult and novel technologies partly to keep a gap with Chinese firms, so I guess a low yield rate should not be such a surprise. Of course, if supplies are very limited, it will be easier for Samsung Electronics and other brands to position the products that it can get and make at the high end. (QD-OLED vs miniLED – The Challenge of Positioning) Low yield may also impact the decision of whether Samsung Electronics will buy WOLED panels from LGD. (BR)
