Spending on display production equipment will drop in 2023 and 2024 compared to this year, according to analyst firm Display Supply Chain Consultants (DSCC).
Spending this year will be US$12 billion but this will drop by 63% to US$4.4 billion next year.
This will increase again in 2024 to US$8.3 billion, still only around 70% of the expected spending this year. Spending in 2023 will be the lowest since 2012, DSCC said.
The outlook for 2023 and 2024 is lower than DSCC’s previous estimate. The firm said the drop was from Samsung Display’s delays in spending in one of its new factories as well as another project from a different company that has become smaller.
The overall decline in revenue from the display sector was another reason for the outlook, DSCC said.
Prices of liquid crystal displays (LCD) have dropped to their lowest level in recent years this year.
But spending OLED is expected to sustain the overall display industry, accounting for more of the total growth going forward, DSCC also noted.