Samsung Display's LTPO TFT Integration Raises Galaxy S Series Production Costs by $8

Research estimates suggest that if Samsung Display (SDC) incorporates low-temperature polycrystalline oxide (LTPO) thin-film transistor (TFT) technology instead of low-temperature polycrystalline silicon (LTPS) TFT technology in their 6.55-inch Galaxy S series smartphone panels, the production cost may increase by approximately $8.

According to data from DSCC cited by Theelec, if SDC uses LTPO TFT panel technology for the OLED panels of Samsung's Galaxy S22 Plus and Galaxy S23 Plus, the production cost would increase by around $8. Currently, only the flagship Galaxy S23 Ultra utilizes LTPO TFT technology.

Both the Galaxy S22 Plus, set to be launched in 2022, and the Galaxy S23 Plus, set to be launched in 2023, will feature OLED panels with LTPS TFT technology. The main reason for the increased cost of LTPO TFT compared to LTPS TFT is the addition of an oxide process.

DSCC estimates that in the first quarter of 2022, the production cost of the Galaxy S22 Plus OLED panel is around $45, which decreases to $40 in the fourth quarter of 2022. However, in the first quarter of 2023, the production cost for the Galaxy S23 Plus OLED panel rises again to $45, reflecting an increase in labor costs. It is projected that in the second quarter of 2023, the production cost of the Galaxy S23 Plus OLED panel is expected to fall below $40 and may reach around $35 in the second half of 2023.

Furthermore, the utilization rate of SDC's small and medium-sized OLED production lines seems to follow a cyclic trend of declining in the first half of the year and rising in the second half, primarily due to Apple's iPhone OLED production being concentrated in the latter half of the year.

Analysis indicates that although domestic panel manufacturers in China have been continuously improving the yield rate of OLED production, they still lag behind SDC even in relatively simple OLED panel production. For example, in the second quarter of 2023, SDC's yield rate for 6.5-inch FHD rigid OLED panels is approximately 94%, while domestic panel manufacturers have a yield rate of about 90%.