UPDATED. 2022-08-09 17:26 (화)
Samsung Display and Ulvac to start negotiation for Gen 8.5 OLED deposition equipment
Samsung Display and Ulvac to start negotiation for Gen 8.5 OLED deposition equipment
  • Gijong Lee
  • 승인 2022.06.30 18:13
  • 댓글 0
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Ulvac thought to be demanding up to 800 billion won
Samsung Display demanding half of the price at 400 billion won
Image: Apple
Image: Apple

Samsung Display and Japan’s Ulvac will start price negotiation for the Gen 8.5 OLED deposition equipment that the latter will be supplying, TheElec has learned.

The pair had been working to develop a deposition machine for Gen 8.5 (2200x2500mm) substrate that uses full-cut substrates and deposits organic materials vertically.

Samsung Display is expected to make the final decision next month on whether it will invest in the production of Gen 8.5 OLED, which will expand its capacity to manufacture OLED panels aimed at IT devices such as tablets and PCs. Using Gen 8.5 substrates for these larger panels instead of Gen 6 (1500x1850mm) substrates used for smartphones is more economical.

Ulvac was demanding around 700 billion won to 800 billion won per unit for the new deposition machines.

This is around 40% to 60% higher than previous deposition machines that cost around 500 billion won.

The higher price tag likely reflects the cost of development and manufacturing of the machines.

Meanwhile, Samsung Display is countering by demanding a price of around 400 billion won, citing that the deposition machine was not completed. It will likely also highlight that it was the only vendor that can buy the machines.

The start of talks between the pair indicates that Samsung Display will soon decide how much it will spend to start expanding its Gen 8.5 OLED production capacity.

The plan will require approval from Samsung Electronics’ Business Support Task Force, the control tower of the entire Samsung conglomerate.

Equipment orders will likely be placed within the year or earlier next year if the plan is approved by next month.

Samsung Display is expected to start with a capacity of 15,000 Gen 8.5 substrates per month, potentially adding another 15,000 depending on market demand.

The South Korean panel maker is also likely to develop a Gen 8.5 half-cut machine that deposits organic material horizontally with Japan’s Canon Tokki.

This is because Ulvac’s machine is the industry’s first to deposit material vertically, which means there is a risk that it won’t work as intended.

Samsung Display will likely be able to mass-produce Gen 8.5 OLED panels in late 2024 to aim for Apple’s second-generation OLED iPads.

The company, along with LG Display, is planning to use existing Gen 6 OLED lines to make the first batch of 11-inch and 12.9-inch OLED panels for Apple’s first-generation iPads launching in 2024.


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