Aug 30, 2017

LG Display's first large flexible OLED Production line, the E5 line in Gumi was supposed to start producing panels in June 2017, but reports from Taiwan suggested that LG delayed the mass production to August (which caused LGD to lose a 3 million OLED supply deal with Xiaomi).

According to analysts from CLSA, the yields at the E5 line are still very low - at around 10%, and it will take LG quite some time to increase the yields enough to start mass production - yields will be at around 30% at year's end, still very low. The displays for upcoming LGD's V30 smartphone were supposed to come out of this line, but LGD has decided to produce these at the E2 4.5-Gen line which is not an efficient fab for smartphone panels.

CLSA estimates that even with Apple's and Google's cash injections, LGD will find it very difficult to compete with SDC which has several years lead in the mobile OLED market. LGD currently hopes to supply Apple with flexible OLEDs by the end of 2018 from the E6 line, and from 2019 in the flexible OLED line at the P10 fab. CLSA sees LGD producing 70 million panels for Apple in 2019, but there are still significant execution challenges ahead for LGD, and SDC in the meantime will continue to increase production efficiency and panel specifications.

Flexible OLED market report

Comments

Are you a member of LGD? How do you know the correct value of yeild as 10%? I think 10% has no reasonable basis. This may only a guess of CLSA.

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