Smartphones equipped with OLED panels have become a new trend. The Chinese factory BOE is optimistic about this market. This year, it will mass produce OLED panels for smart phones, and look forward to grabbing Apple's big orders in the future.
The Nikkei News reported on the 24th that BOE's Sichuan B7 plant will begin mass production of OLED panels for smartphones by the end of this month. During the 11th holiday, engineers will be stationed at the factory to continue production, and it is hoped that OLED will accelerate shipments by the end of October.
Not only that, BOE executives said that the company is building a new OLED factory in Mianyang, Sichuan, and is expected to start production in 2019. The Mianyang plant is said to supply the OLED panel for the iPhone. According to relevant sources, Apple is investigating BOE technology, and will first use BOE OLED in Apple Watch, and then expand it for iPhone.
At present, the iPhone OLED orders are all eaten by Samsung Electronics. In order to diversify the supply, Apple actively contacts BOE, LGD, Japan Display and shares technology with the above three factories.
Can BOE's technology catch up with OLED leader Samsung Electronics? Foreign OLED experts employed by Chinese factories say that the technology of BOE B7 is comparable to that of Samsung. BOE has the backing of the Chinese government and its financial resources. The investment amount of Chengdu and Mianyang Plant is as high as RMB 93 billion, which is far better than the Japanese industry and can quickly catch up with the Korean plant.
At present, in the smartphone OLED market, Samsung Electronics is the absolute king, with a market share of 90%. The second is LGD, and BOE ranks behind. The Nikkei News has a positive evaluation of BOE technology, but the Chinese media attitude is more conservative, saying that the technology is still not as good as the Korean factory.
The Global Times reported on the 23rd that the huge demand for OLEDs in the market means that OLED has become a strategic material for Chinese mobile phone manufacturers, attracting Chinese panel makers such as BOE, Huaxing Optoelectronics, and Huiguang. In December last year, Hefei Optoelectronics' 6th generation OLED production line in Shanghai was started. BOE invested in a 6th generation flexible OLED production line in Mianyang, Sichuan. The industry estimates that domestic manufacturers have invested hundreds of billions of yuan in OLED development and production. However, new capacity may not be stable until 2020.
Zhang Baizhe, a professor at Tsinghua University and a liquid crystal display expert, said that although the investment in the Chinese factory is large, OLED technology is more difficult. Samsung has been developing for more than 10 years, and it took at least four or five years to improve the yield. Chinese manufacturers must be fully prepared.
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