Chemtronics is Korean SME behind Apple’s next-generation display

[Courtesy of Chemtronics]

Chemtronics Co., a mid-sized South Korean company specializing in electronic components and chemical materials, will play a crucial role in the manufacturing process of hybrid organic light-emitting diode (OLED) displays that Apple has chosen as its next-generation display standard.

On Wednesday, Chemtronics announced that it will invest 15.9 billion won ($12.3 million) in the construction of its Sejong plant dedicated to the 8.6th generation display etching process.

As Samsung Display Co., one of Chemtronics’ key accounts, prepares to supply Apple on a large scale, it is expected that the scale of the etching process to be covered by Chemtronics will reach hundreds of billions of won in value.

Earlier this year, Chemtronics revealed plans to invest about 24 billion won in a 6th generation OLED etching facility. The plan comes after Apple’s announcement of its intention to replace large panels used in laptops and tablet PCs with OLED displays.

Through its display business, Chemtronics is currently engaged in the etching process of thinning rigid OLED display glass for mobile phones, monitors and laptops. With hybrid OLED, the company’s coverage expands even further. Chemtronics takes care of not only glass substrate etching but also the process of cutting panels into cell units, cell inspection, and loading and transportation processes, providing a turnkey solution.

Chemtronics is the only company globally that has secured the technology to simultaneously carry out glass substrate etching and cell unit cutting during the etching process. This technology is crucial because it prevents breakage when moving panels with a thickness of 0.2mm, which is thinner than previous rigid OLED displays.

In hybrid OLED, the top glass substrate is replaced by a film-type encapsulation, leaving only the bottom glass substrate. Global customers have requested a method that combines etching with the cell unit cutting process to prevent easy breakage of the bottom glass substrate when making it thinner.

The large-sized IT OLED sector is considered a blue ocean in the display industry, as Apple, a major player in the display market, is set to use more OLED panels in its models. Samsung Display decided to invest 4.1 trillion won to produce 8.6th generation OLED displays for IT devices from 2025, while LG Display embarked on investments in mid-sized OLEDs for tablet PCs and other applications.

In-vehicle displays, which are increasingly evolving into multi-screen and all-in-one displays, are also a blue ocean for hybrid OLED.

They are thinner than the LCDs and rigid OLEDs traditionally used in vehicle displays, making it easier to achieve natural curves. As Samsung Display laid out plans for mass production of hybrid OLED displays for vehicles, Chemtronics’ etching technology is expected to be applied to the production of these displays as well.