Samsung plans to start operating at full capacity starting this month with seven production lines of OLED screens dedicated to Apple, according to ETNews. This will increase your production of panels and housings up to multiply them by seven and will go from 15,000 panels per month to 105,000 panels per month.
Since last year, Samsung Display has invested a lot of money in the incorporation of equipment and the construction of process lines in Vietnam. Although the amount of its annual investment between plant and equipment usually ranges between three thousand five hundred million and four thousand five hundred million, Samsung Display has doubled its average annual investment last year, investing 8.69 billion dollars. In addition, during the first half of this year, its investment amounted to 7.72 billion dollars.
While Samsung partially produces flexible OLED panels, along with the rigid OLED panels on its A2 assembly line, only panels for iPhones on its A3 line will be produced for which Apple has requested different technologies. Operating at 100% performance, Samsung could produce an estimated total of 124 million 6-inch panels and 130 million 5.8-inch panels per year. However, it is said that Apple's performance will be low due to technical difficulties. It is estimated that Samsung Electronics yields are at 80%, but the returns for Apple will be 60%. Using that percentage of performance, Samsung would be able to make 75 million panels 6-inch and 79 million 5.8-inch panels per year.
Apple sells about 200 million iPhones per year. Even with the launch of an iPhone 7s and iPhone 7s Plus, it seems likely that the company will suffer the shortage of OLED screens. It is said that LG will start operating an OLED production line in the second quarter of 2018, but it is expected to produce around 15,000 panels per month. To further increase production, Samsung is considering investing in a new A5 plant. In addition, an L7-1 line is being converted from LCD to the sixth generation flexible OLED and it is rumored that it will be operational from the fourth quarter of 2017.
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