Samsung Display Expands Asan Gen-6 OLED Capacity

According to industry sources, Samsung Display has decided to expand the production capacity of its sixth-generation organic light-emitting diode (OLED) manufacturing line at the A4 facility in Asan, South Chungcheong Province, South Korea. The move marks the company's first major capacity expansion since announcing its investment in an eighth-generation OLED production line for IT applications in 2023.

The expansion is expected to add approximately 15,000 glass substrates per month in Gen-6 OLED production capacity. The project will utilize vacant space within the existing A4 factory, where older production equipment had previously been removed. By leveraging existing infrastructure, Samsung Display aims to address manufacturing bottlenecks and strengthen its readiness for next-generation display technologies.

A detailed investment plan is expected to be released in August. In terms of key production equipment, Japan-based Nikon is reportedly expected to supply 14 lithography systems, exceeding earlier industry estimates of 10 to 11 units. Meanwhile, a deposition system is expected to be provided by Canon Tokki, a leading supplier of OLED evaporation equipment.

Industry estimates place the total investment between KRW 3 trillion and KRW 4 trillion (approximately USD 2.2 billion to USD 2.9 billion). According to market sources, each lithography system is valued at roughly KRW 30 billion, placing the value of the 14 units alone at around KRW 420 billion to KRW 500 billion. When additional front-end manufacturing equipment, backend infrastructure, factory automation systems, logistics solutions, and facility upgrades are included, overall project costs could approach KRW 4 trillion.

Samsung Display’s existing small- and medium-sized OLED production lines, A3 and A4, are currently operating at utilization rates estimated between 80% and 90%. The planned expansion is intended to support anticipated demand from upcoming advanced device categories, including Apple's rumored foldable iPhone, a potential 20th-anniversary iPhone edition, and future devices featuring four-sided curved OLED displays.

On June 29, Samsung Electronics announced that, as part of a large-scale national industrial initiative supported by the South Korean government, Samsung Display plans to establish a next-generation display production complex in Asan. The facility is expected to manufacture smartphone displays, foldable OLED panels, and ultra-high-resolution microdisplays. The broader investment program is projected to reach KRW 67 trillion, with the A4 OLED expansion serving as a key component of the long-term development strategy.

The investment highlights Samsung Display’s commitment to strengthening its OLED manufacturing capabilities as global demand continues to grow for premium smartphone displays, foldable devices, and advanced display technologies.