samsung display signs $1.8 billion project in vietnam to produce 8.6-generation oled modules
2024-09-23
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on september 23, china business news learned that vietnam's bac ninh province and samsung display signed a memorandum of understanding on an investment of us$1.8 billion (approximately rmb 12.7 billion).
last year, samsung invested in the construction of an 8.6-generation oled panel production line in south korea. as a downstream supporting project, samsung will build an 8.6-generation oled panel downstream it and automotive oled module production base in vietnam in the future.
at present, the main production line of oled panels in the world is the 6th generation line. chinese and korean companies are starting a new competition in the 8.6th generation oled panel production line. boe and visionox are also building 8.6th generation oled panel production lines in chengdu and hefei respectively. samsung signed a new investment in vietnam. in the future, the industrial chains of south korea and vietnam will compete with the industrial chain of china.
samsung continues its investment strategy in vietnam
wu rongbing, chief display analyst at omdia, told the first financial reporter that samsung has continued its investment strategy in vietnam. the oled display industry chain in mainland china is a follower, lagging behind samsung in terms of quality, yield and control of the supply chain, but both have their own advantages in terms of market size and product innovation.
yang shucheng, secretary-general of the china-india-vietnam electronics (mobile phone) enterprises association, believes that samsung is increasing its investment in vietnam, hoping to form a more complete industrial chain in vietnam.
on september 12, it was reported that samsung display was cooperating with bac ninh province in vietnam to promote a new project in vietnam. at that time, only the oled modules for it use downstream of the 8.6-generation oled panel were mentioned. yang shucheng said that with the signing of this investment memorandum of understanding, samsung display's new project in vietnam is expected to include plans to produce automotive oled modules in the future.
public information shows that samsung display has invested $6.5 billion in bac ninh province, vietnam since it entered the province in 2014. with the $1.8 billion signed this time, the total investment will increase to $8.3 billion (about rmb 58.5 billion). samsung display's bac ninh factory mainly produces small and medium-sized oled display modules, which are supplied to samsung electronics, apple, etc., and a foldable panel production line was also built in 2022.
currently, vietnam is the main production base of samsung electronics and its subsidiary samsung display in asia. samsung electronics has bac ninh production company, thai nguyen production company and ho chi minh city home appliances complex factory in vietnam.
according to qichacha, samsung still has bases in tianjin and dongguan, china. the business scope of tianjin samsung vision mobile co., ltd. is the development, design, production, processing, repair, maintenance, and sales of mobile communication display devices, other electronic product display devices and related products, and the provision of related technical consulting services, etc. the business scope of dongguan samsung vision co., ltd. is the production and sales of new display devices (flat panel displays and screens) and new flat panel display devices, oled flat panel screens, etc.
china and south korea compete in the field of medium-sized oleds
from the perspective of the display industry, the field of medium-sized oled displays is becoming a new hotspot for competition among chinese and korean companies. samsung in south korea, boe and visionox in chengdu and hefei, china, are all building 8.6-generation oled production lines for medium-sized it and automotive applications and producing high-value-added oled panels.
boe said in an investor relations event on august 28 that the target for oled panel shipments in 2024 is still 160 million pieces. if it wants to achieve profitability, it must further focus on product customer layout and high-end development. boe is unwavering in its investment in the 8.6-generation oled production line, and will rely on its own technical capabilities and operational efficiency to achieve a virtuous cycle of operations. in the future, it will promote the development of flexible oled display business in the automotive field. the application of oled in high-end it products has become a trend.
on august 29, visionox signed an investment contract in hefei to build an 8.6-generation oled production line with a total investment of 55 billion yuan. visionox said that the global oled market has been steadily expanding, penetrating from mobile phones to tablets, laptops, and automotive fields. omdia predicts that from 2023 to 2028, the annual compound growth rate of oled panel shipments for it products will be 56%, and the annual compound growth rate of oled panel shipments for automotive displays will be 49%. oled will further increase its share in the mid-size incremental market.
with samsung display transferring its suzhou 8.5-generation lcd panel production line to tcl huaxing in 2020, samsung display has focused its panel business on the oled field. faced with the situation where chinese mainland companies dominate the global lcd panel market and expand in the oled panel field, samsung intends to increase its investment in medium-sized oleds and widen the gap with chinese companies in the oled field.
(this article comes from china business network)
