BOE, Guoxing Optoelectronics and other accelerated layout of OLED panels OLED supply chain manufacturers will benefit

- Jul 17, 2018-

Although South Korea's Samsung and LG Display currently dominate the global OLED panel market, Chinese flat panel manufacturers include BOE, Guoxing Optoelectronics (CSOT), Hehui Optoelectronics, Visionox, Xinli Optoelectronics, Tianma Microelectronics, Kunshan Guoxian Optoelectronics And Junyu Technology and others have entered the industry.

According to sources, in 2019, as more and more OLED panel production lines began commercial production, Taiwan's COF (film flip chip packaging) packaging service suppliers for OLED driver ICs, including Shan State Technology and Nanmao Technology, etc. More orders will be obtained from the above-mentioned Chinese mainland panel makers.

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According to the survey data, it is estimated that by 2020, the revenue of OLED-related industries will grow to 43 billion US dollars, accounting for nearly 30% of the total revenue of flat-panel displays, and it is expected to reach 50 billion US dollars by 2024. At present, Taiwanese panel makers AUO and Innolux are hard to invest resources to develop OLED panels. Panel makers that can compete with Korean factories in the future will be mainland manufacturers such as BOE.

Shan State Technology and Nanmao Technology sources believe that COF will replace COG (glass flip chip) technology in 2019, becoming the mainstream packaging process for small-size smart phone panel OLED driver ICs.

The Taiwanese factories such as Shan State and Nanmao have already been actively preparing for the battle, waiting for the mainland panel factory to strengthen the output of OLED panels. Driver IC packaging and testing vendors pointed out that the focus of 2018 observation will be the film flip chip packaging (COF) process, which was originally applied to the COF process of large-size panel driver ICs. In response to the full-screen design of mobile phone panels, COF will gradually replace traditional glass. The flip chip package (COG) process, and the COF process can also be used for the OLED panel driver IC.

For the Taiwanese driver IC packaging and testing manufacturers, in addition to TDDI IC and LCD driver IC COF packaging, the development of OLED related fields must first consolidate the relationship between mainland partners. Currently, mainland OLED panel related manufacturers include BOE and Huaxing. Optoelectronics, Tianma Microelectronics, Hehui Optoelectronics, Truly International, Visionox, Kunshan Guoxian, and Softwoo Technology will continue to explode in the capacity and related materials demand of the mainland OLED production line.

According to sources, semiconductor material supplier Wah Lee Industrial expects sales to continue to grow by nearly 20% in the second half of the year as demand for related OLED devices and materials continues to grow.

Driven by its established distribution channels in China, Wah Lee's OLED business line sales increased 2.5 times in the first half of 2018, which also indicates China's strong demand for related OLED products.