Samsung Display to invest $3.1 billion in advanced OLED panels

Samsung Electronics Co. Executive Chairman Jay Y. Lee and Korean President Yoon Suk Yeol, middle, applaud at the investment deal ceremony on Apr. 4. [Photo by Lee Seung-hwan]

Samsung Display Co. will spend 4.1 trillion won ($3.1 billion) to establish a mass production system for advanced organic light-emitting diode panels in South Korea as demand for high-end displays is expected to grow.

On Tuesday, Samsung Display held a ceremony to invest in advanced production lines for OLED panels to be used in laptops and tablets by 2026. The display manufacturer plans to establish the world’s first mass production system for Gen 8.6 OLED panels for IT devices, going beyond the production of Gen 6 OLED panels for smartphones.

The OLED panel market for IT devices is considered a blue ocean. It is projected to grow at an average of 39 percent annually until 2027. The Korean government plans to set aside 420 billion won in the R&D budget for the OLED sector and expand incentives for corporate investment. It also plans to nurture 9,000 leading professionals in the field.

Samsung Display’s investment comes as part of an effort to stay ahead of China in the display industry as it is chasing closely behind South Korean players.

“The government will expand incentives so that companies can invest at an appropriate time,” said Korean President Yoon Suk Yeol as he attended the investment deal between Samsung Display and other materials, parts and equipment manufacturers. “We will also offer research and development support for the advancement of OLED technology.”

The ceremony was attended by 250 guests, including Yoon, Samsung Electronics Co. Executive Chairman Jay Y. Lee, South Chungcheong Province Governor Kim Tae-heum, Asan Mayor Park Gyeong-gwi and other officials from major suppliers and universities.

“In order to realize innovation and growth, we should boost capability in advanced industry sectors to international levels,” Yoon said. “There should be aggressive support and investment in the sector.”

Yoon emphasized that combining high technologies leads to industrial opportunities.

Samsung Electronics’ Lee also said that the conglomerate will aggressively invest in advanced industries for the future of the country and spare no effort to engage in technology development.

Display generation is sorted according to the size of the mother glass that is injected to the production line. The size of the mother glass for Gen 8.6 is more than double that of Gen 6, which means that more advanced technology is required.