Samsung Display to Invest $31 Billion in Boosting OLED Panel Production, Targeting Apple Demand and Regaining World's Top Spot

Samsung Display (SDC) has recently announced a KRW 41 trillion (approximately USD 31 billion) investment by 2026 to boost the production of 8th generation IT OLED panels. As an electronic components distributor, this investment news is relevant to our industry as it may impact the supply chain and availability of OLED panels for our customers.

The investment is expected to target the demand for OLED panels from Apple and also align with the South Korean government's goal to regain the global panel industry's top position by 2027. SDC's investment in 8th generation OLED panels is a significant move towards achieving these objectives.

SDC's president, Choi Joo-sun, announced that the investment will be used to mass-produce 8th generation IT OLED products, with an annual output of around 10 million units. This investment is a substantial increase compared to their previous KRW 13 trillion investment in QD-OLED panels in 2019.

Industry experts believe that SDC's investment in 8th generation OLED panels will increase their chances of winning orders from Apple. There are reports that Apple plans to expand the use of OLED panels from iPhones to iPads in 2024, and potentially to MacBook and iMac in the future.

Other global IT companies such as Samsung Electronics, LG Electronics, Asus, and Dell have also released high-end notebooks that feature OLED panels. Market research firm, Omdia, predicts that OLED's share of the IT panel market will increase from 3.9% in 2021 to 23.6% in 2027.

Furthermore, SDC's smartphone OLED business has seen a surge in demand due to the pandemic, leading to an increase in cash assets. SDC has reportedly loaned KRW 200 trillion to its parent company, Samsung Electronics, and the industry is keen to see whether SDC will invest in large-sized OLED panels in the future.