Following its success in the LCD panel market, China’s BOE Technology Group plans to lead in the OLED panel sector as well. According to a report from Japanese media outlet Nikkei News on May 27th, BOE, China’s largest panel manufacturer, plans to boost its OLED panel production capacity by more than a half compared to the current level within the next three years.

As per the same report from Nikkei News, BOE has established a series of LCD plants with support from the Chinese government. In the OLED panel sector, BOE is also said to be eyeing on becoming the market leader by expanding production and catching up with South Korean companies like Samsung Electronics.

Reportedly, BOE’s new OLED panel plant “B16” in Chengdu, Sichuan Province, began construction in late March. The goal is to complete the plant building by 2024, install manufacturing equipment by September 2025, and start mass production in 2026, producing 8.6-generation OLED panels. BOE’s competitor, Samsung Electronics, is also said to be looking for mass production of 8.6-generation OLED panels in 2026 by upgrading its existing plants.

The same report further indicates that BOE is actively hiring talented professionals from Japan and South Korea and leveraging global suppliers. Thus, BOE’s OLED panel technology has reportedly gained recognition, successfully entering Apple’s iPhone OLED panel supply chain, serving as a catalyst for its growth.

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(Photo credit: BOE)

TrendForce has released the latest panel quotations for early May. TV panel prices showed signs of stabilization as increased supply capacity mitigates the upward trend. Meanwhile, monitor (MNT) panel prices maintain their upward trajectory, driven by the market’s robust demand. However, challenges persist in forming a consensus for price increases in the notebook (NB) panel sector, resulting in relatively lower price level.

More details are as follows:

• TV

After May, the momentum of stocking up on television panels starts to weaken, particularly in the medium-sized and small-sized television panels due to decreased demand. As a result, the momentum for overall panel price increases tend to gradually slow down.

Whether panel manufacturers will once again initiate their strategy of producing on-demand over the next two months, thereby correcting the high-end utilization rate of over 80% to support the trend in panel prices, will be a key point for observation in the near term.

Looking at the price increases of television panels in May, it is expected that the prices for 32-inch, 43-inch, and 50-inch will stabilize, while 55-inch panels will increase by 1 USD and 65-inch and 75-inch will increase by 3 USD.

• MNT

With regard to MNT panels, demand from brands remains robust. On the other hand, panel manufacturers’ urgent desire to boost panel prices as much as possible during this wave of price increases, driven by aim to achieve a turnaround in the deficit situation for MNT panels, also helps on the relatively proactive stance towards the panel price trend in May.

Currently, it is expected that in May, the prices of MNT panels will increase. Open Cell panels are expected to rise by 0.5 to 0.7 USD. Among panel modules, the 21.5-inch is expected to increase by 0.5 USD, the 23.8-inch by 0.6 USD, and the 27-inch panel by 0.5 USD.

• NB

Looking at NB panels, although demand for panels has started to pick up noticeably compared to the first quarter, rebounding from the seasonal downturn, the increase is still lower than initially expected. This reflects the high uncertainty among brand customers regarding future end-demand, making it difficult for clear signals of panel price increases to emerge.

Panel manufacturers also find it challenging to establish a strong and consistent consensus on panel pricing strategy due to the lower-than-expected growth in demand.

It is currently expected that in May, the prices of NB panels will see only a slight increase. For HD TN models, where supply is limited and demand is relatively good, coupled with lower prices, there is a chance of a marginal increase of 0.1 USD.

For FHD IPS models, where there are more suppliers and fiercer competition, some panel manufacturers hope to follow the price increase of HD TN models and raise prices by 0.1 USD as well. However, this still depends on the attitude of brand customers.

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Samsung Display (SDC), a subsidiary of Samsung, has been developing its own OLEDoS (OLED on Silicon) technology. However, there are reports now indicating that Samsung’s smartphone division plans to adopt Sony’s OLEDoS technology for integration into Samsung’s XR devices.

According to the Korean media “The Elec,” Samsung’s MX division has decided to utilize the technology from Sony instead of the technology from the group’s SDC, reflecting Samsung’s need for a new technology manager to oversee new semiconductor devices (referring to electronic components, such as OLEDs and transistors).

This newly created position for device development must oversee the technological advancement of all of Samsung’s electronic businesses, including Samsung MX, DS (chip division), displays, and motors. If Samsung’s subsidiaries had collaborated closely from the outset, then Samsung’s MX division might have adopted SDC’s technology instead of Sony’s. A similar situation has also occurred with the glass substrate developed by Samsung Electronics.

“The Elec” believes it is strange that SDC has not collaborated with the group’s companies on OLEDoS technology, as SDC has expertise in glass processing. This highlights a lack of clear roles and responsibilities within Samsung, which is a significant waste of internal resources.

OLEDoS and glass substrate microdisplays require close cooperation between departments such as semiconductors, displays, circuit boards, and display glass processing technology. If these departments are well integrated, it could bring opportunities for Samsung, as the company has departments capable of handling all related technologies.

However, the current situation does not reflect this. SDC initiated the M project at the end of 2022, aimed at developing OLEDoS and LED on Silicon technology. But SDC losing to Sony now means the former will lose valuable production experience.

(Photo credit: Samsung)

Taiwan experienced consecutive earthquakes measuring 7.2 and 6.5 on the Richter scale this morning. According to the Hsinchu Science Park Bureau, foundries such as TSMC and UMC, along with panel manufacturer Innolux in Zhunan, have partially shut down operations as a preventative measure. Additionally, IC testing house King Yuan Electronics and Polyimide Film manufacturer Taimide Tech have evacuated all staff from their Gongluo plant.

An earthquake with a magnitude of 7.2 on the Richter scale occurred at 7:58 AM Taiwan time on the 3rd, with the epicenter located 25 kilometers south-southeast of Hualien.

The regions densely populated with semiconductor and panel factories, Taichung City and Hsinchu County, experienced a maximum seismic intensity of level 5, while Hsinchu City and Tainan City reached a maximum seismic intensity of level 4.

The Hsinchu Science Park Bureau reported that TSMC and UMC in Zhunan have partially shut down for precaution, Innolux Corporation in Zhunan also partially ceased operations, while all employees at King Yuan Electronics and Taimide Tech have been evacuated. Display maker AUO, as well as semiconductor supply chain companies Macronix, PSMC and UMC in Hsinchu Science Park are operating normally.

The bureau also stated that electricity supply in various parks within Hsinchu Science Park is normal. However, there are anomalies in the water supply at the  Biomedical Science Park and Tongluo Science Park, which are currently under investigation; all other parks and construction sites within Hsinchu Science Park are operating as usual.

In another statement by the Southern Taiwan Science Park Bureau, Innolux’s Plant B, TSMC’s Fab 18, and Hannstar in the Southern Taiwan Science Park recorded a seismic intensity of level 4, while Innolux’s Plant F in Kaohsiung measured a seismic intensity of level 3. Companies within the area reported no impact.

For further updates on the aftermath and damage assessment, please follow TrendForce News closely.

(Photo credit: USGS)

On February 28th, as per the ams OSRAM’s press release, it has announced the unexpected cancellation of its Micro LED key project. The company will reevaluate its related strategies and provide initial estimates of the impact on its mid-term operations.

As ams OSRAM announced the unexpected cancellation of its key Micro LED project, it has prompted the company to reevaluate its Micro LED development strategy, as per TechNews’ report, speculation has arisen regarding the collaboration with Apple to introduce Micro LED technology into the Apple Watch Ultra 3. The cancellation may signify the end of this collaboration.

The first Apple Watch featuring a Micro LED display was originally scheduled for release in 2026, with rumors suggesting a potential delay to 2027 or later due to high costs. However, ams Osram’s recent announcement to cancel the Micro LED project undoubtedly sends shockwaves through the industry, casting a shadow over the integration of Micro LED technology into watches or other devices.

Unexpected Cancellation of the Micro LED Project

The ams OSRAM’s press release indicates that the management board of ams OSRAM has been informed of the unexpected cancellation of its Micro LED key project. Consequently, it has decided to re-assess its Micro LED development strategy, especially concerning the 8-inch LED fab in Kulim, Malaysia.

Upon preliminary estimation, ams OSRAM anticipates recording non-cash impairment losses of EUR 600 to 900 million related to Micro LED assets and goodwill in the first quarter of 2024. Currently, ams OSRAM is engaged in discussions with relevant clients.

This implies the changes to the capitalization of ams OSRAM’s investment into Micro LED R&D and the reduced subsidies from public funding schemes. These changes will impact ams OSRAM’s operational profitability (adjusted EBIT) for the fiscal year 2024, with estimated effects ranging from EUR 30 to 50 million.

In the information disclosed, ams OSRAM did not provide detailed specifics about the Micro LED project. Further information will be closely monitored by the industry. From the perspective of the Micro LED industry, there are still technological bottlenecks to overcome, such as chip efficiency, yield rates in mass transfer, achieving full colorization, and the immaturity of supporting industries. Cost reduction has yet to be effectively achieved, which may be one of the reasons for the project’s cancellation.

Micro LED Watch Project Not Necessarily Cancelled, Opportunities for Taiwanese and Korean Manufacturers?

Nevertheless, Apple has not abandoned discussions with other chip manufacturers, implying that the Micro LED watch project may continue. Taiwan and South Korea still maintain corresponding supply chains to support this, with downstream operations involving LG Display (LGD) in backplane and module production.

TrendForce points out that Ennostar has past experience collaborating with Apple, and PlayNitride is also a leading global Micro LED manufacturer. Furthermore, PlayNitride is part of the AU Optronics Group and can provide Micro LED watch chips and backplane transfer technology.

However, for now, the termination of the collaboration between Apple and ams Osram may also prompt other manufacturers to consider the risks of engaging in new partnerships with Apple. Apart from the initial substantial investment required, once the collaboration begins, Apple will actively seek out second suppliers, which are all aspects that need careful consideration.

From the current Micro LED supply chain outlook, TrendForce indicates that Micro LED has four main applications: large displays, wearables, automotive, and near-eye displays.

Samsung leads in large displays, and there is significant market anticipation for Micro LED smartwatches. AU Optronics continues to focus on Micro LED watches, but with a lack of synchronous brand influence, overall interest and development willingness from manufacturers may decrease compared to other brands.

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(Photo credit: ams OSRAM)