In early April this year, Apple has signed a $9 billion small-size AMOLED panel supply agreement with Samsung's panel makers. Samsung will supply 70 million to 92 million small-size AMOLED panels to Apple in 2017. The market expects that Apple will adopt AMOLED screens for the first time on the iPhone 8. However, for Apple, which sells 210 million mobile phones a year, this order is clearly unable to satisfy its appetite. It is reported that Apple will be equipped with AMOLED screens in about 30% of high-end mobile phones.

Capacity gap

The main reason for this phenomenon is the limitation of global AMOLED production capacity. According to IHS statistics, in the third quarter of 2016, Samsung shipped 99.70 million pieces of the entire AMOLED panel market with more than 98% of the 101 million pieces. The AMOLED panel is almost entirely in a monopoly.

However, on the demand side, AMOLED screens are the target of many domestic manufacturers in 2016. Xiaomi 5, Huawei Mate9 Pro, vivo Xplay 5 and other mobile phones all use Samsung AMOLED screens. Although Samsung's production capacity will increase every year, on the one hand, it will usher in Apple's $9 billion big order. On the other hand, Samsung's own Galaxy S8 with AMOLED will be shipped soon, making the AMOLED panel, which is in short supply, even more tense.

According to reports, AMOLED is highly sought after, mainly because it has the characteristics of self-illumination, no need to use the backlight board, and is lighter and thinner than the LCD screen. AMOLED has a wider viewing angle, higher refresh rate, thinner size and lower power consumption than traditional LCD screens used in most mobile phones. In addition, AMOLED has a certain flexibility, which is not suitable for damage compared to the LCD screen of the glass substrate, and is also an excellent partner with the current hot 3D curved glass.

Although Samsung first mastered the core technology of AMOLED, its peers are also chasing after non-stop. Li Chen, an analyst at Yuqi Consulting, said that there are already many companies chasing the production progress of AMOLED screens, such as Sharp, LG and Japan Display. In addition, Apple has also had contact with Chinese panel maker BOE A, and has been testing samples for several months on AMOLED screen cooperation.

Shen Wan, an analyst at Shen Wan Hongyuan, pointed out that AMOLED localization faces major development opportunities. Although the iPhone 8 will be exclusively supplied by Samsung, in the future, Apple is bound to cultivate a supply chain outside of Samsung, and other panel makers are facing development opportunities. At the same time, the iPhone 8 adopts AMOLED screen, which will drive AMOLED's penetration rate in smartphones rapidly, and the penetration rate is expected to increase rapidly from the current 20% to over 50%.

Domestic opportunity

On April 11th, at the 5th China Electronic Information Expo, a number of new AMOC products with new technology standards were unveiled. BOE A, TCL Group's Huaxing Optoelectronics, Shentianma A and Black Cattle Foods were all given. AMOLED panel production line schedule and production schedule.

In 2016, BOE A invested 100 billion yuan in two 6-generation AMOLED panel production lines invested and constructed in Chengdu and Mianyang. The total annual output of the project will reach 1.6 million square meters. After the completion of production, it is expected to become the world's second largest mobile AMOLED panel enterprise. . The company announced on May 12 that the 6th generation flexible AMOLED production line in Chengdu was officially put into production, with a designed production capacity of 48,000 glass substrates per month. It is the first AMOLED production line in China to adopt the most advanced evaporation process in the world.

After the 2015 Yizhu Real Estate Daxie Wang Literature, Black Cattle Foods is divesting the original food business through a series of actions to fully transform the AMOLED industry. At present, the company started construction of the 6th generation AMOLED project in Gu'an Yungu with a total investment of nearly 30 billion yuan. It has independent intellectual property rights and is expected to be put into production in 2018. After the project is completed, the production capacity is 30,000 pieces/month, which can meet the demand of nearly 70 million smartphone screens.

Huaxing Optoelectronics announced on April 1 that it plans to invest in a 6th generation LTPS-AMOLED flexible display panel production line with a monthly capacity of 45,000. The project is scheduled to start construction before June 30, 2017, and mass production will be realized in 2020, with a total investment of about 35 billion yuan.

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