Samsung Display to Build A7 OLED Factory, Ready by 2028

According to industry sources on August 20, Samsung Display’s investment plan for the main construction of its new A7 factory in Asan, South Korea, was approved by the company’s investment review committee on August 7. The approved investment covers the construction of the factory’s main structure, while the cleanroom, power and water infrastructure, and OLED production equipment are excluded. Further investments will be reviewed and approved separately after the company assesses market conditions and customer demand.

Samsung Display plans to secure production space first by constructing the factory building, then determine products and production capacity in phases as market demand becomes clearer. The company intends to prioritize the factory’s construction so it can quickly expand OLED capacity if demand rises sharply. Building a display manufacturing facility requires considerable time for structural construction, cleanroom installation, equipment delivery and setup, and process stabilization. Securing production space in advance will allow Samsung Display to order equipment when demand for specific OLED products strengthens.

Another key reason for the A7 investment is the limited availability of production space at Samsung Display’s existing Asan Display City campus in South Korea. Its A3 and A4 production lines manufacture OLED panels for conventional smartphones, foldable smartphones, and tablets. Continued investment and process upgrades have further reduced the space available for additional equipment. The A3 line produces foldable OLED panels for Samsung Electronics’ Galaxy Z series, as well as OLED panels for flagship smartphones, including the Galaxy S series and Apple’s iPhone.

Samsung Display currently operates its existing production lines flexibly to respond to fluctuations in demand across different products. However, the company still needs additional production space to prepare for potential medium- and long-term growth in OLED demand. The A7 facility is expected to serve as a flexible manufacturing hub where production equipment can be deployed according to market conditions rather than being dedicated to a specific product.

Samsung Display is expected to begin the procurement process for the A7 factory this month, with construction scheduled to start next year. The facility is expected to be completed in early 2028. The timing of cleanroom construction, production equipment installation, and mass production will be determined through subsequent investment decisions based on market conditions and customer demand.