QD-OLED Yield Stabilized at 85%... Expectations for Performance Improvement
[Asia Economy Reporter Han Yeju] Samsung Display is accelerating its push into the large panel market with QD-OLED (Quantum Dot Organic Light Emitting Diode). Thanks to the rapidly improved yield (the ratio of qualified products among finished products), manufacturing costs are also expected to decrease, raising expectations for performance.
According to industry sources on the 11th, Samsung Display recently increased the yield of QD-OLED panels from about 50% last November to 85%.
QD-OLED is a next-generation panel that Samsung Display began mass production of at the end of last year. Since selecting quantum dots as the next-generation material in 2012, Samsung Display has been focusing on developing QD displays. In 2019, Lee Jae-yong, Vice Chairman of Samsung Electronics, designated QD displays as the next growth engine, accelerating development, and the technology was first unveiled at the international electronics exhibition 'CES 2022' held in Las Vegas, USA, earlier this year.
Samsung Display's achievement of raising QD-OLED yield to 85% within eight months is recognized as a significant accomplishment within the industry. Generally, the display industry considers a competitive yield benchmark to be 80%, referred to as the 'golden yield.' It took 10 years to achieve golden yield in the past LCD market, and LG Display reached golden yield three years after the first mass production of W (White) OLED. Considering Samsung Display's initial QD-OLED mass production yield was only 50%, this is seen as rapid stabilization in a short period.
As the yield increases, manufacturing costs are also expected to drop significantly. Market research firm Display Supply Chain Consultants (DSCC) predicted that Samsung Display's QD-OLED manufacturing costs will decrease by 20-25% next year compared to this year.
The fact that products equipped with Samsung Display's QD-OLED have recently received favorable reviews is also raising expectations for a leap in the large panel market. Recently, Value Electronics, an electronics retailer in New York, USA, selected Sony's A95K as the 4K TV of the year at the 'TV Shootout 2022.' Samsung Electronics' 'S98B QD-OLED' took second place. Both the first and second place products are equipped with Samsung Display's QD-OLED panels.
Based on the stabilized yield, it is expected that momentum will build to secure additional QD-OLED customers in the second half of this year. It is known that Samsung Display is currently discussing panel supply with additional customers, including Samsung Electronics as well as monitor companies such as ASUS and MSI.
Accordingly, an improvement in the performance of Samsung Display's large business division is also anticipated. Earlier, Choi Kwon-young, Vice President of Samsung Display, mentioned in the Q2 conference call, "Several set brands are promoting the adoption of QD displays," adding, "Full-scale sales expansion is expected after the second half of the year, and profitability is expected to improve." He also stated, "After launching new products adopting QD displays, we will actively promote the excellence of QD displays through joint promotions with customers and strive to lead the premium market."
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