Market analysts from DSCC say that the low utilization rates at Samsung Display has caused the company to delay its capacity expansion plans. SDC's decision to delay its A5 fab has already been discussed, but DSCC now says that Samsung is also significantly delaying the ramp-up at its new A4 line. DSCC estimates that SDC will delay this new line by at least a year.
LG Display has also reportedly cancelled the first phase of their next flexible OLED line, the P7 (which can be a conversion of LGD's old P7 LCD line). DSCC sees LGD ordering equipment for a new flexible OLED line only at the beginning of 2019.
DSCC says that the OLED oversupply situation may cause the Chinese government to delay and reduce its subsidies to local OLED makers. DSCC sees Tianma, Everdisplay and CSoT all delaying their current flexible OLED lines. BOE's OLED plans, however, are still on track as planned.
Comments
Rob, you are right, this is my mistake. This is a flexible OLED line - actually the first time I hear of a P7 (this could be a conversion of LG's old 2012 P7 LCD Line).
All most gave me a heart attack. I can deal with a canceled unannounced fab.
First knowledge of a E7 to. My fab tracker has E6 @ 22,500 and E5 at 7,500. Im assuming the original report is collating these capacities.
Can I take this opportunity to thank you for your excellent coverage of the OLED industry.
Ron reading the original DSCC article it seems LG is cancelling its P7 mobile line and not its TV lines
"LG Display’s P6 fab is ramping now and will eventually reach 30K of monthly substrate input capacity, we believe the first phase of their next OLED fab, P7, has been cancelled. POs were believed to have been issued in Q3’17, but have been cancelled are not likely to be reissued until Q1’19 with production expected in 2020. LG Display is just starting its ramp on E6 and won’t start shipping to Apple until 2H’18. As a result, it is said that Apple can’t invest in LG Display’s OLED business until they see the success of their ramp, the success of the next iPhone with the LGD panel and LGD’s capability as a smartphone OLED supplier"
https://www.displaysupplychain.com/blog/oled-fab-delays