AMOLED Capacity to Nearly Triple in 2012: DisplaySearch

Taipei, Sept. 5, 2011 (CENS)--Global double-emission active matrix organic light-emit diode (AMOLED) production is forecast to grow 890,000 square meters in 2011 to 2.6 million square meters in 2012, and then double again in 2013, according to DisplaySearch.

The major display-market research and consulting firm's latest report says the long-anticipated growth in size and volume of AMOLED display manufacturing is finally becoming reality, with Samsung Mobile Display's (SMD) ramp-up of the first 5.5th-generation (5.5G) AMOLED plant.

SMD currently accounts for nearly 100% of commercial AMOLED shipments, and its new, A2 5.5G plant and planned factories will account for much of the expected capacity growth, DisplaySearch said. Other existing and potential AMOLED manufacturers are watching SMD's progress and aggressive expansion plans, hoping that they will be able to leverage advances in equipment technology and take advantage of growing interest in AMOLED displays for smartphones and other applications.

LG Display of Korea, AUO and Chimei Innolux of Taiwan, and IRICO of China are also forecast to build either pilot or mass production AMOLED lines in the next two years, while other companies are considering entry into the market, said Charles Annis, DisplaySearch Vice President of Manufacturing Research.

LCD panel makers have suffered negative net profit margins for four consecutive quarters, and with excess a-Si LCD capacity for TV production, flat panel display (FPD) equipment spending is now forecast to fall by more than 40% in 2012. On the other hand, supply of AMOLED displays has been very tight in 2011. As SMD ramps A2, many more AMOLED displays will hit the market, and demand is expected to grow in turn. AMOLED displays are a bright spot in the FPD manufacturing industry, offering hope for FPD supply chain companies.

Most of the new AMOLED capacity coming on-line is optimized for small/medium display production. But high-quality and—theoretically—low-cost AMOLED TV remains the ultimate target for FPD makers. Both SMD and LG Display are moving ahead with 8G AMOLED TV pilot production plans for 2012, DisplaySearch noted.