Samsung Ordering the A3 6th Generation AMOLED Line Equipment - operational by end of this year
According to the industry on the 11th, Samsung Display decided to set up the 6th generation (1,500 X 1,850mm) AMOLED line in its new A3 factory and started discussing the procurement of equipment with the suppliers.
The production capacity is to be somewhere in between 20 to 40 thousand original panels per month, and the line is expected to produce panels for both TVs and mobile devices. The 6th generation line is capable of producing two pieces of panel for 55 inch TVs or tens of mobile device panels. The anticipated size of investment for the set-up of the new line is KRW 1.7 trillion, making it the largest investment made by the display makers recently.
The size of investment grew larger than originally planned, as Samsung Display decided to adopt LTPS process. The company is to start placing the orders in the Q3 this year, and to start the operation of the new line by the end of this year, by tightening the equipment supply schedule.
One of the reasons why Samsung Display is rushing the procurement of line equipment is because the mobile display production capacity of its A2 line has hit its limit. As the sizes of displays for Galaxy S4 and Galaxy Note grew to 4.99 and 5.5 inches, respectively, the demanded surface area has also grown. If the current market trend continues, the demand for AMOLED panel for mobile devices during Q1 next year will be twice as large as that of Q1 this year, according to the trade.
A person from equipment manufacturers commented, “the size of order will be significantly large in spite of relatively smaller production capacity, because the cost of adopting LTPS process will be quite large and it is
the first time that equipment for the 6th generation AMOLED is ordered.”
It is my understanding that no matter what the product, the display is exactly the same. In other words, when Samsung adds productive capacity for screens, it does not matter if the screen is large and on a television or smaller and on an S4, it's the same product. The only difference is the size into which the large glass is cut. At the moment, there is more demand than Samsung can supply and so in the next year or two the lines will be running day and night seven days/week. There can be discussion about television and tablets and pfablets and S4 and how each is selling but, in the end, the real question is how many can Samsung make.
As yields get better, there will be television and the price will come down as capacity to produce grows. And that capacity will keep growing as Samsung demonstrates to itself that sales will keep growing. Actually, quite simple.................and terrific for PANL as Samsung is so committed to AMOLED