Whether we like Samsung or not, Apple designs their next-gen iPhones and iPads based on the best parts that could give their premium devices an edge. Samsung at the moment is the best OLED supplier on the planet and because of their leadership Apple has awarded them contracts extending out for two years. In turn, Samsung has announced they'll be building the largest OLED plant in the world to keep up with demand. On a second front, Samsung is looking to bring solid state batteries to market over the next two years for smartphones that will provide longer battery life but also bring a safety factor to mobile devices that will ensure fires are a thing of the past; something airlines will be happy to hear. Unless Apple announces a breakthrough battery for the iPhone in the next few years, Apple could consider Samsung SDI's new battery if it delivers an advantage. Apple already has a patent on file for charging solid state batteries.

Solid State Batteries by 2019-2020

Samsung creates market trends through their Galaxy line of smartphones and then turns around and makes their pitch to Apple, Google and other Android OEMs to use their advanced new parts, chips or displays. They've gotten this down to a science. One of the new trends that Samsung is beginning to reveal involves solid state batteries for smartphones and other mobile devices.

It's being reported today that "Korean battery maker Samsung SDI will be able to produce solid-state batteries that are safe from explosions for smartphones in one to two years, the firm's executive said.

'Our technological level to produce a solid-state battery for smartphones will be mature enough in one to two years.' The Samsung executive acknowledged that they're in a race with their rival LG Chem who is also working on a similar battery.

The Samsung SDI source added that 'The batteries will be applied for smartphones first and then for electric vehicles after its safety is fully proved. The application for automobiles may be seen around 2025.

Solid-state batteries are the next generation of batteries to replace lithium-ion batteries currently used in most smartphones and electric cars. Since the batteries are made of solid electrolytes instead of liquid electrolytes, it has a significantly lower risk of ignition or explosion. A battery usually explodes when the liquid inside flows out and reaches air or water outside."

New Samsung OLED Plant to Keep up with Apple

In another report this morning they note that "Samsung Display started extending A3 plant on full-scale during second half of 2015 due to the fact that Apple ordered large amount of OLEDs. In order to supply panels to Apple and Samsung Electronics, it is understood that Samsung Display has secured production capacity of 135,000 panels per month over two years span.

As Apple expands their OLED demands and extends OLED to other mobile devices, Samsung Display is planning to construct world's biggest OLED plant which will have more than 30% of production capacity than A3 that is currently Samsung Display's biggest plant. Its strategy is to grab upper hands by expanding its production capacity before Chinese businesses have technical skills in flexible OLED.

Samsung Display has started constructing 6th generation flexible OLED production line called 'A5 (tentative name)', which has production capacity of 180,000 panels per month and up to 270,000 panels per month, at its new sites in Cheonan and Asan. It notified such plan to some of its main front-end process equipment manufacturers and is mediating with them regarding schedule for supply and demand of equipment.

Samsung Display is going to hold a board of directors meeting next month and is going to finalize its plans for investments on its new plant.

Industries estimate that Samsung Display will need about $14.0 billion (16 trillion KRW) just for equipment if it wants to make investments so that its new plant has production capacity of 180,000 panels per month. If it makes investments that will produce 60,000 panels per month as part of first stage of investment, it will cost Samsung Display about $4.37 billion (5 trillion KRW) just to purchase equipment. Total duration of investment is 3 years and it is heard that Samsung Display will continue ordering equipment from second half of this year until first half of 2021.

Samsung also Plans for Foldable Display Production

Interestingly, the report notes that Samsung is preparing their new plant to also produce "foldable displays" in the 9 to 10" size range. This is an area that Samsung has been working on for years as our archives prove out, and Apple patents have shown that they're already planning for a possible iPhone that could fold. Apple's latest foldable-display related patent was published in March for a lubrication system for a  foldable iPhone.

The two reports covering Samsung displays today quote Samsung currently owning between 94.6% and 98% market share in OLED production. By expanding quickly, they could bring costs down to choke off future competition. With that said, LG, BOE and Foxconn/Sharp are hoping to win future OLED contracts with Apple who prefers to have multiple suppliers on major components whenever possible.

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