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Samsung is Reportedly Ramping up OLED Display Production for Apple this Month by a Whopping 7-Fold



According to a new supply chain report today Samsung Display is going to operate 7 of its 6th generation flexible OLED lines, which are for Apple, on full scale this month. Its production capacity of panels for iPhones will increase by 7 fold from 15,000 panels per month from last year to 105,000 panels per month this year.


The supply chain report claims that "Samsung Display finished inspecting 7 of its lines that produce OLEDs for iPhones sometime this month and is going to operate them on full scale.


Samsung Display started operating its rear-end process line, which is constructed in Vietnam, at the end of June and is manufacturing initial supply of panels for iPhones at this line.


Samsung Display partially produces flexible OLED panels along with rigid OLED panels at its A2 line. However it only produces panels for iPhones at A3 line as technologies that Apple requested are different as the ones that are applied to A2 line.


If Samsung Display operates production lines for Apple at an operation rate of 100% with 100% yield, it is able to produce about 124 million 6-inch panels and 130 million 5.8-inch panels respectively in single year.


However it is heard that yield for panels that Apple requested is low due to high degree of technical difficulty. Industries believe that yields for Samsung Electronics' panels and Apple's panel are at least 80% and about 60% respectively.


If Samsung Display operates its lines at an operation rate of 100% with 60% yield, it is able to produce about 75 million 6-inch panels and 79 million 5.8-inch panels respectively. Considering the fact that yearly sales volume of iPhones is about 200 million and that production capacity of LG Display's E6 line, which is going to be operated starting from second quarter of 2018, is only about 15,000 panels per month, it seems unlikely that entire 2018 iPhone series will have OLED panels."


10.3 Rumors - Supply Chain +

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