Samsung Display Expected to Postpone Investment on Quantum Dot Display until Next Year
Dec 26, 2019
It is likely that Samsung Display’s plant and equipment investment in 8th Gen QD (Quantum Dot) display will be postponed until next year as periodic personnel change and reorganization continue to be delayed.
According to the industry, it is likely that Samsung Display will start sending out POs (Purchase Order) to prepare 8th Gen QD Display production facilities next year when it was planning to start sometime in the middle of this month.
Fact that Samsung Group’s periodic personnel change and reorganization continue to be delayed is the biggest reason for the delay.
The industry believes that an announcement of new personnel will be possible in January. Once CES 2020 is finished and personnel change and reorganization take place right after CES 2020, Samsung Display can decide on personnel and groups that will be responsible for the investment.
Samsung Display is taking a very careful approach towards the investment. There is a practice where a buyer normally sends a LOI (Letter of Intent) before sending a PO so that a seller can prepare necessary products according to a due date.
However, Samsung Display’s partners are waiting for POs as Samsung Display told them about the investment verbally without sending any LOI.
“We were only told that Samsung Display would send out POs soon and no important information such as specific schedule and size of the investment are confirmed.” said one representative. “Although we predicted that Samsung Display would carry out its investment by end of this year, it seems most likely that the investment will take place next year.”
“It seems that Samsung Display is taking a conservative approach as there is a talk that even Canon Tokki, which supplies deposition equipment that is part of key front-end processes, has not received a LOI from Samsung Display.” said a different representative. “We have no choice but to wait until Samsung Group finalizes personnel change.”
Samsung Display is going to convert part of L8 Line, which is producing 8th Gen LCD, into a QD display pilot line that can produce 30,000 sheets per month. If it finishes ordering necessary equipment by end of the first quarter and construct a production line, actual production will most likely take place starting from the first half of 2021.
The industry believes that Samsung Display will gradually increase the output of QD displays by converting L8-1-2 and L8-2-1 lines once it is able to improve QD display technology and production stability by testing the production of QD displays from L8-1-1- line.
“While Samsung Display was very aggressive and fast when it came to its investment on A3 plant, it is taking a conservative and careful approach towards QD display.” said a representative. “Because its investment is basically for pilot production, the direction of Samsung Display’s investments in the future will depend on what kind of results it gets from pilot production.”
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