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A new report claims Samsung Display is getting ready to build the world’s biggest OLED factory that should become operational in approximately two years. The biggest display panel supplier on the planet is reportedly planning to expand its operations to two more massive buildings which should guarantee that it will be able to meet future demand for OLED panels that are gradually becoming more popular.
The new factory, which is said to be named the A5, will reportedly produce Samsung’s sixth-generation display modules. The company’s current biggest factory is the A3, though the A5 line could have up to 30 percent of extra production capacity, which would mean a production capacity of anywhere between 180,000 and 270,000 display panels per month. Due to this, the company is said to already be in the middle of talks with equipment suppliers in order to get the factory operating at full capacity soon after its construction is finished. The South Korean tech giant is expected to finalize the plans for the factory over the course of this month. Once finalized, the plans could see Samsung invest as much as $1.75 billion in its construction, while a further $14 billion would be spent on equipment over the course of three years. Initial mass production is expected to commence in 2019, though the factory may not reach its full capacity until 2021, industry insiders said.
It’s certainly not surprising that Samsung is consistently investing heavily into OLED display panels as the company controls 98 percent of the market for small and medium OLED modules, so by keeping investments high, the firm is ensuring its continued dominance in the market, as well as ensuring a technological lead over its competitors. Recent rumors point toward a number of Chinese companies working together in order to create a new OLED supplier and combat Samsung’s deal with Apple, so the company is certainly going to have to work hard to stop the competition eating into its revenue. It remains to be seen what the final details of the new factory are once the plans for it are finalized, but the plant will certainly help Samsung meet the rising demand for OLED panels and could be officially confirmed in the coming months.