Patently Apple reported back in June that Samsung’s new OLED production with Gen 8.5 displays for the production of iPad and next-gen MacBook displays would start in 2024. For some reason Ross Young sent out a belated tweet about this development earlier this week as if it was a new discovery. Today, a new supply chain report sheds more light on the delay OLED displays.
According to a new supply chain report, OLED production is moving toward Gen 8 for larger displays and Apple has made it known to all its OLED suppliers that it would prefer if they chose Gen 8 deposition equipment made by Japan’s Canon Tokki.
Gen 8 OLED lines are to manufacture 10 to 20-inch panels aimed at tablets and notebooks. This is more economical for companies to do so than using their existing Gen 6 lines, which use smaller substrates like smartphones.
Apple’s supplier BOE is the only supplier moving to use Cannon Tokki’s equipment right out of the gate while Samsung and LG originally had plans to use alternative OLED deposition equipment suppliers.
Samsung is planning to use equipment from Japan’s Ulvac. It is a full-cut, vertical deposition machine and is expected to be used in Samsung Display’s first Gen 8 OLED line, which will manufacture single-stack OLED panels. These displays will primarily be for HP, Lenovo, Dell and other companies.
The report further notes that Samsung Display will likely have to concede to Apple and install Canon Tokki’s Gen 8 half-cut, horizontal deposition machine for the second phase that could be ready for 2024. The question becomes, will Samsung abandon their plans with Ulvac and leap directly to using Cannon Tokki’s equipment to save on time.
Meanwhile, LG Display has been developing its own Gen 8 half-cut, horizontal equipment with South Korean equipment maker Sunic System. This partnership has yet to receive the blessing of Apple as well.
Unlike Samsung Display which has a sure customer in Samsung, LG Display completely relies on only Apple for its smartphone OLED panels. It may be forced to abandon its project with Sunic System to use Canon Tokki for Cupertino.
Over the years, Cannon Tokki has developed customers beyond Samsung and is now not willing to co-develop new equipment with Samsung. Tokki has maintained its stance that instead of co-developing Gen 8 equipment it will develop and supply them on its own if its customers place their orders. This is likely done to offset any chance that it will have to exclusively supply its kits to a certain company as co-development means co-ownership. For more, read the full report by The Elec.
The report didn’t provide the reasoning behind Apple’s preference for Cannon Tokki equipment, though it may have to do with Apple’s two-stack tandem OLED design that uses two red, green and blue emission layers.
