Samsung plans a massive seven-fold increase in OLED production for Apple this year, according to a new report.
The display-making Samsung division reportedly installed seven production lines at its A3 plant, which will be dedicated exclusively to Apple. They will allow Samsung’s monthly OLED capacity for iPhone screens to increase from “just” 15,000 sheets to a massive 105,000 sheets!
The report claims that Apple’s technical demands for OLED displays mean a roughly a 60 percent yield rate for manufacturing. Yield for the displays Samsung uses for its phones regularly hits 80 percent. It’s not clear from the report exactly what the difference between the two displays might be.
Keeping up with the LG Joneses
Samsung, the exclusive OLED manufacturer for iPhone 7, likely will split orders with LG in future years. According to a recent report from KGI Securities analyst Ming-Chi Kuo, LG Display supplies 10 percent to 20 percent of the iPhone’s OLED supply by 2019, and 20 percent to 30 percent by 2020.
Apple will reportedly spend approximately $2.7 billion for exclusivity over LG Display’s new OLED production facility. The South Korean company is setting up a new production facility that will cost around $3.5 billion. Apple’s investment ensures Cupertino will be the plant’s only customer.
The plant supposedly will churn out 30,000 OLED iPhone displays every month when it reaches full capacity.
From the sound of things, Samsung is keen to show off its manufacturing prowess to avoid giving up too much of the lucrative Apple contract!
Source: The Investor