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Why Samsung Needs Apple

Samsung Display has big plans to develop a vertical deposition machine for use in the production of Gen 8.5 IT OLED panels, but it will be a big order to fulfil for it to be financial viable.

That’s where Apple comes in.

Samsung is developing the technology in order for Apple to meet technology and price marks for the panels. Gen 5.5. and Gen 6 are both too costly, as the unit-per-substrate rate is too low.

Vertical equipment prevent FMMs for sagging during production, which renders them useless, and allows for more panels to be cut from each substrate.

But Samsung needs “an order of substantial volume”, according to The Elec, to expand its panel production. The company is waiting on the go ahead from Apple to start investing in Gen 8.5 IT OLED production facilities.

Similar plans between Apple and Samsung Display have faltered before: they were to develop a 10.86-inch OLED iPad last year, but plans were abandoned during the September quarter after Samsung couldn’t produce the required number of panels at a suitable price point.

Samsung Display will need a large enough order from Apple to begin building the production facilities, with an iPad with an OLED panel likely hitting the market in 2024.

There’s a lot of uncertainty around such projects these days, with long lead-times, and the ever-shifting availability of components making this a risky bet for both parties.

 



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