Breaking the exclusive supply of Samsung OLED situation, Apple plans to invest LG Display

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According to the South Korean media reported Monday that Apple is LG display panel subsidiary LG Display negotiations, hope to LG Display investment 2 trillion won to 3 trillion won (about 1.75 billion US dollars to 2.62 billion US dollars), for Apple exclusive OLED screen. Reported that the two companies have been agreed for the investment plan for the time being, but the details have not yet been finalized, such as investment time and size. According to people familiar with the matter, LG Display will hold a board meeting later this month and will make a final decision.

At present, the Samsung display panel subsidiary Samsung Display occupies the smart phone OLED panel market share of more than 95%, mainly to Samsung and Apple and other limited number of large customers to provide OLED screen. In order to compete with Samsung, LG Display and China's BOE and other display panel manufacturers are trying to improve OLED panel production.

"At the moment Samsung Display is the only OLED manufacturer that meets Apple's stringent quality standards, and LG Display has reached 70 percent of Apple's requirements, while China's OLEDs are slightly behind LG Display," an industry source said.

Informed sources said Apple's investment will be put into the LG Display new plant E6. There have been news that the factory specifically for the iPhone production display panel. LG Display is still unable to supply OLED screens for the iPhone due to the failure to purchase Canon Tokki vacuum evaporators.Breaking the exclusive supply of Samsung OLED situation, Apple plans to invest LG Display

Canon Tokki vacuum evaporator is the most advanced OLED manufacturing equipment, supply is very limited. But last month it was reported that LG Display plans to order two sets of 6-generation vacuum evaporators from Canon Tokki. Each system is priced at $ 115 million and can support up to 15,000 substrates per month. The first system will be delivered in December this year, the second set will be delivered in February 2018.

In addition, LG Display also has another OLED new plant "E5", the plant will be mainly for LG Electronics and China customers OLED panel.

Industry sources, for Apple, the investment LG Display mainly has two benefits. First of all, in the current OLED panel production is still limited circumstances, can ensure that Apple's supply. In addition, due to the investment, Apple's getting goods prices must also have advantages.

This year, Samsung may be the exclusive supplier of iPhone 8 OLED screens. But in the future, the situation is bound to be broken. Moreover, Apple has always liked to purchase parts from multiple suppliers, thereby reducing the excessive dependence on a vendor.