As costs continue to decline, it is projected that OLED technology will reach a 50% penetration rate in the smartphone market by 2023. Additionally, OLED is gradually making inroads into applications such as TVs, laptops, and tablets. According to TrendForce analysis, the current landscape of OLED technology presents various opportunities and challenges depending on the application. In the realm of smartphones, the number of OLED smartphone products is on the rise, and the technology is taking on diverse forms, including rigid OLED screens, OLED curved displays, and OLED foldable displays.

TrendForce predicts that by 2023, the penetration rate of OLED foldable smartphones will reach 1.6%, with sales volume increasing from 12.8 million units in 2022 to 18.26 million units. With advancements in OLED display specifications and increasingly competitive pricing, OLED foldable smartphones are poised to become mainstream in the market. Currently, the penetration rate of OLED foldable smartphones is relatively low, primarily because OLED technology has not fully met user demands for larger screens within the same form factor while maintaining affordability. This marks a significant development trend for foldable smartphones in the future.

In response to the ever-evolving landscape of smartphone screens and high consumer demand, panel makers are taking a multi-faceted approach to upgrading OLED technology. To achieve full-screen displays while ensuring quality in screen visuals and camera functionality, certain brands have begun utilizing hole-punch screens, integrating the camera beneath the display – a prime example being the iPhone 14 Pro series with its Dynamic Island. On the other hand, companies like Samsung, BOE, and CSOT are opting to forego punch holes altogether. Instead, they are enhancing screen transparency and incorporating the camera beneath the display by rearranging specific display area pixels and reducing size.

Panel makers are enhancing OLED technology to improve both lifespan and efficiency. They are adopting LTPO technology to dynamically adjust screen refresh rates, reducing power consumption. Additionally, for foldable screens, companies are eliminating polarizers, using color filters to reduce reflection, and switching to ultra-thin glass cover panels. These optimizations are in response to the varied demands of smartphone applications, and they signal the continued growth of OLED in future smartphone uses.

In the realm of TV, TrendForce thinks that COVID-19, geopolitics, and rising shipping costs, furthermore, companies have been focusing on the development of larger-sized TVs, particularly in the 65, 77, and 85-inch categories, causing the overall decline in the TV market in recent years. The OLED TV market is primarily dominated by Korean manufacturers LG and Samsung. TrendForce projects that in 2023, OLED TVs will account for approximately 2% to 3% of the overall TV market.

TrendForce suggests that Samsung and LG are currently enhancing OLED technology by adopting new materials and incorporating quantum dot technology to improve OLED’s luminous efficiency. This has led to an increase in the cost of OLED technology, which in turn has limited the widespread adoption of OLED TVs. However, with factors such as depreciation of production machinery, improved yield rates for OLED products, and streamlining of the production process, it is expected that OLED TV prices will gradually decrease in the future.

Monitor

In 2023, OLED display shipments are expected to reach approximately 530,000 units, marking a 342% increase by YoY. However, OLED displays are projected to hold only a 2% to 3% market share in the overall display market. Within the OLED display market, LG is poised to surpass Dell and become the brand with the largest market share due to its proactive deployment of OLED product lines and diversified product offerings, along with strong demand for 27-inch products in the market.TrendForce states that the future of OLED displays lies in larger sizes, necessitating the use of higher-generation panel production lines for efficient and cost-effective OLED panel manufacturing.

Notebook, Tablet

In the laptop and tablet arena, as compared to smartphones and televisions, the application of OLED technology has been relatively limited. However, according to TrendForce, OLED technology is beginning to transition into IT-related applications. This includes innovations such as OLED Tandem device structures, as well as recent developments like JDI’s photolithography eLeap and Visionox’s ViP. These advancements are set to significantly enhance OLED performance and lifespan. When these technologies are ready for deployment, they are expected to effectively reduce OLED costs and substantially increase OLED panel penetration in the IT market.

Notably, Apple has already integrated OLED technology into its iPad products, and the Apple brand’s influence is expected to drive other brands to adopt OLED technology, accelerating OLED’s penetration in the IT market.

Automotive display

In the realm of automotive displays and other applications, TrendForce envisions a future for OLED technology characterized by transparency, extended lifespan, and versatility to meet the demands of foldable displays, automotive displays, and transparent displays. In automotive displays, OLED features such as high brightness, wide viewing angles, high contrast, and a broad operating temperature range make it suitable for applications like rear-seat entertainment systems and in-car infotainment displays. In the realm of transparent displays, OLED’s high transmittance and ability to display real-time information make it suitable for use in automotive windshields, windows, and A-pillars. Additionally, in the domain of stretchable displays, flexible OLED screens can be stretched and slid while maintaining a consistent thickness.

According to a report by Taiwan’s Money DJ, Chinese assembly contractor Luxshare Precision has been actively entering Apple’s supply chain in recent years and has secured contracts to manufacture high-end models of the iPhone 15, no longer exclusively produced by Foxconn. Luxshare Precision’s Chairman, Wang Laichun, revealed in a recent interview that they have secured orders for three iPhone 15 models this year, and this business segment has doubled in performance over the past year.

She also disclosed that they are preparing for the production of Apple’s upcoming head-worn device, the Apple Vision Pro, set to be released early next year.

As reported by The Paper, Wang Laichun pointed out that Luxshare Precision currently provides development and manufacturing services for a range of Apple products, including iPhones, Apple Watch, AirPods, and Apple Vision Pro. They offer an integrated solution, from diverse components and modules to complete system assembly.

Luxshare Precision’s semi-annual report for 2023, released at the end of August, showed that their sales for the first half of the year reached RMB 97.97 billion, with a year-on-year increase of 19.53%. Their net profit was RMB 4.154 billion, marking a year-on-year increase of 22.48%. Not only did they achieve record cash flow, but several financial indicators also improved. Luxshare Precision expects its net profit for the first three quarters of 2023 to reach between RMB 7.040 billion and RMB 7.680 billion, a year-on-year increase of 10% to 20%.

The report noted that Wang Laichun attributes this growth to the company’s process optimization and efficiency improvements, which have led to a significant increase in the number of iPhone production models and quantities in recent years. She also mentioned that the company continues to expand its capacity in China to meet Apple’s demands. Last year, they established a new facility in Kunshan dedicated to iPhone development and production, creating tens of thousands of job opportunities.

(Photo credit: Apple)

Source to media China Times, after an extensive promotional campaign, Huawei’s Mate 60 smartphone, which has regained attention in mainland China’s media and online platforms, has finally secured the second position in the Chinese domestic smartphone market for the 36th week (4^th~10^th, Sep.), with a 17% market share. It is just a 0.2% difference from the top-ranked Honor smartphone. Supply chain sources estimate that by the 37th week (11^th~17^th, Sep.), Huawei could potentially claim the top spot in market share.

According to reports from “Mydrivers,” Huawei’s smartphone sales have been improving lately, thanks to media and online promotion of the Mate 60. Data from authoritative market research organizations in the supply chain indicates that in week 36 (4^th~10^th, Sep.), Huawei achieved a 17% market share in smartphone sales, securing the second position in the Chinese smartphone market.

The report notes that although Huawei is ranked second, this achievement in market share comes amidst “well-known significant pressures.” Moreover, it trails only 0.2% behind the top-ranked Honor (17.2%). Supply chain insiders anticipate that by week 37 (11^th~17^th, Sep.), Huawei is poised to claim the top spot in market share, a remarkable feat considering the significant pressures facing the company.

The report highlights that Huawei’s current sales situation is characterized by a shortage of the entire Mate 60 lineup. Supply chain sources reveal that orders for the Mate 60 Pro have increased to 15-17 million units. Information from distributors indicates that Huawei began comprehensive sales of the Mate 60 Pro in physical stores starting from September 10th.

Analysts had previously expressed optimism about Huawei’s return to the high-end smartphone market in mainland China. The previous Mate50 series achieved sales of approximately 5 million units, and it is expected that the Mate 60 series could surpass 6 million units.

According to TrendForce research on the ranking of 2Q23 smartphone production, in China, Transsion (including TECNO, Infinix, and itel) eclipsed Vivo to secure the fifth spot for the first time ever. TrendFroce reveals that Transsion’s high production output benefited from a trifecta of inventory replenishment, new product launches, and its entry into mid-to-high-end markets. Demonstrating robust production performance since March, the company’s growth trajectory is poised to extend its momentum into Q3. Meanwhile, Vivo (including Vivo and iQoo) is treading cautiously amid a sluggish global economy, which is evident in its conservative production plan: Vivo churned out 23 million units in Q2—a modest quarterly increase of 15%—and as a result, slipped to sixth place in global rankings.

Xiaomi (including Xiaomi, Redmi, and POCO) is reveling in a bountiful Q2, posting production numbers of around 35 million units—a staggering seasonal uptick of 32.1%. This boom can be attributed to a strategic depletion of channel inventory coupled with the allure of new product launches. However, Xiaomi’s channel inventory still runs high, setting the stage for a Q3 that is likely to mirror its Q2 performance. On the other side of the spectrum, Oppo (including Oppo, Real, and OnePlus) also had a fruitful Q2. The brand primarily rode the wave of rebounding demand in Southeast Asia and other regions, amassing approximately 33.6 million units and marking a seasonal leap of 25.4%. With seasonal demands on the horizon, Oppo’s Q3 production is poised for an estimated growth of 10~15%, primarily targeting markets in China, South Asia, Southeast Asia, and Latin America, hot on Xiaomi’s heels.

Currently, the top-ranking Honor smartphone is also a Chinese smartphone manufacturer. Originally launched as a sub-brand under Huawei’s product line series in September 2011, it began independent operations on December 16, 2013. Towards the end of 2020, Honor separated from Huawei, and there were multiple rumors about Honor’s independent listing preparations, which the company denied. (Image credit: Huawei)

(Source: https://www.chinatimes.com/realtimenews/20230921005374-260409?chdtv)

According to a report by Taiwan’s Central News Agency, the Apple iPhone 15 series has made its debut, and analysts have examined the supply chain, highlighting the increasing penetration of Chinese manufacturers in key components such as packaging modules, back glass, batteries, USB-C ports, acoustic components, wireless charging, and assembly. The role of Chinese manufacturers in critical optical components, including prisms, is particularly noteworthy.

Apple recently unveiled the iPhone 15 series, drawing market attention to the status of component suppliers, especially the progress made by Chinese manufacturers in optical key components. The top-tier iPhone 15 Pro Max features a tetraprism design in its telephoto camera. Ming-Chi Kuo, an analyst at TF International Securities, pointed out that this prism is a key component used for the first time in Apple’s iPhones. He speculates that the prism may be primarily supplied by China’s Lante Optics, with Crystal-Optech possibly being the second supplier.

In the realm of camera lenses, both reports from Japanese securities and Ming-Chi Kuo suggest that China’s Cowell may enter the supply chain for the front camera modules of the iPhone 15 series. Analysts also speculate that China’s Sunny Optical Technology may join the supply chain for camera lens components in the iPhone 15 series.

Regarding semiconductor packaging, while the system-in-package (SiP) modules for the iPhone 15 series are still primarily supplied by USI under the ASE Group, analysts anticipate that China’s JCET Group and Luxshare Precision will also enter the supply chain for SiP modules.

In the realm of back glass, the market generally expects that Lens Tech and Biel Crystal will remain the only two suppliers. In terms of acoustic components, GoerTek Acoustics is expected to provide a significant portion of the supply.

Analyzing the battery sector, reports from Japanese securities reports indicate that China’s Desay and Sunwoda are entering the supply chain for battery packaging in the iPhone 15 series.

Additionally, Luxshare Precision’s position in the supply chain for the iPhone 15 series cannot be underestimated. Analysts suggest that Luxshare has entered the assembly subcontracting supply chain for the iPhone 15, iPhone 15 Plus, and the top-tier iPhone 15 Pro Max. Some analysts estimate that Luxshare’s overall assembly share in the iPhone 15 series has increased to 28% to 30%, trailing only behind Hon Hai Precision Industry Group’s share of 58% to 60%.

Furthermore, analysts also point out that Luxshare has ventured into components such as wireless charging modules, USB-C ports and cables, as well as haptic technology elements in the iPhone 15 series.

According to the news from Taiwan media, CNA, Huawei has broken through the U.S. blockade and launched a 5G smartphone equipped with domestically produced Chinese chips, sparking discussions. Huawei stated that although Chinese-made chips lag behind foreign counterparts, if they are not used, staying behind will always be a setback. If widely adopted, it could drive technological progress and catch up gradually.

According to reports from Chinese media Yicai, representatives from Huawei made these remarks during a speech at the “2023 World Computing Conference” on the 15th.

Huawei mentioned that the computing industry includes PCs, servers, operating systems, databases, as well as processors, memory modules, SSDs, HDDs, network cards, RAID cards, SSD controllers, network chipsets, and RAID card chipsets that constitute PCs and servers, which are the most critical problems to solve.

“We couldn’t even make LOM and RAID cards before, and we couldn’t even create a PMIC for a server. So, we need to return to the basics of the computing industry.”

Huawei believes that China needs to develop its own processors, operating systems, and databases. If all of these are sourced from external suppliers, there is a risk of information breaches through backdoors and vulnerabilities in PCs and servers. It could also be exploited as a means of attacking other servers and PCs.

“If our opponent is at an expert level, even though we have domestically produced products, we are still at a basic level, making it relatively easy to attack and steal information”. Huawei emphasizes that domestic production does not necessarily equate to security; only by enhancing capabilities can genuine security be achieved.

“There are currently more than 600 Chinese enterprises listed on the U.S. government’s entity list,” said Huawei’s representative, covering chips, hardware, software, algorithms, and applications. Additionally, export controls have impacted everything from design tools and materials to manufacturing equipment and chip products.

“In this situation, a practical problem we face in the long term is that China’s semiconductor manufacturing process will remain behind for quite a while. Huawei believes that this situation will persist for a considerable period because advanced processes are needed to produce more advanced chips. On the other hand, due to U.S. sanctions, obtaining advanced chips or computing systems presents challenges, if not impossibilities. Based on our years of experience and future judgment, this is a long-term situation. Don’t harbor any illusions about the future.”

“Although the chips, servers, and PCs we produce lag behind those produced abroad, if we don’t use them, the gap will always be there, and falling behind will always be the case. But if we use them on a large scale, it could drive progress in our entire technology and product development, gradually catching up”. According to Huawei, only through widespread use of domestic chips can push the entire computing industry to progress and develop.

Huawei recently quietly launched a high-end 5G smartphone equipped with the 7nm chip “Kirin 9000S,” manufactured by SMIC. While Chinese public opinion refers to it as a “breakthrough of the U.S. blockade” and a “strong return to 5G,” experts point out that its performance still lags behind the latest smartphone chips by two generations and question its manufacturing yield rate and output.

(Source: https://www.cna.com.tw/news/acn/202309160229.aspx)