Spend 880 million US dollars! Sharp wants to expand OLED screen production capacity

According to foreign media reports, Sharp Corporation expects to expand its investment scale and spend approximately 100 billion yen (US$880 million) to manufacture organic light-emitting diode (OLED) displays. This technology will be used in Apple’s next series of iPhones. Sharp and other OLED display makers are trying to catch up with Samsung Electronics. Samsung Electronics not only manufactures OLED displays, but also applies them to its own music market. Informed sources said earlier that Apple has decided to use an OLED display on an iPhone that will be released later this year.


Sharp wants to expand OLED screen production capacity

Sharp hopes to start producing at least 30,000 display panels per month at its Japanese plant from next year, which will require about 100 billion yen in investment, which is higher than the 57.4 billion yen disclosed in September last year. Sharp plans to establish a small-scale OLED production line by June 2018 through this investment. Sharp is headquartered in Osaka, and Taiwan’s Foxconn Technology Group holds a majority stake in the company.
Market research reports show that the panels that Sharp plans to produce can be made into about 15 million smartphone display screens each year. Considering that each year the production scale of smart phones reaches several hundred million units, if Sharp wants to become a strong participant in the OLED display market, the company needs to further increase its production capacity, and the production of 30,000 panels per month is tantamount to a pay cut.
Analysts say that more than 95% of smart phone OLED displays are currently manufactured by Samsung Electronics. This is partly due to the difficulty faced by competitors in obtaining the mechanical equipment needed to produce these displays. Manufacturers based in China, such as South Korea’s LG Display and Japan’s Japan Display Inc., as well as BOE Technology Group Co., Ltd., are accelerating plans to build OLED factories. In 2020, smart phone manufacturers may consume 1 billion OLED displays a year, which is higher than 500 million this year.
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