The South Korean company plans to build the largest-scale OLED factory in the world to increase competition with its rivals.
According to ETNews, Samsung’s new plant is scheduled to be named A5, located in Cheonan and Asan in Chungcheong Nam Province (South Korea). Production capacity is expected to reach 180.000 to 270.000 sixth generation OLED panels per month, about 30% higher than the A3, the largest OLED plant today.
“Although the plan needs to be passed at the board meeting next month, Samsung has sent a plan notice to major equipment suppliers,” a source said. The plant is expected to reach 2 trillion won (about $1.72 billion) in construction. If starting the plan this year, this line can be operated in 2019.
Samsung has started to expand the A3 plant to meet supply for partners since 2015. The factory has a capacity of 135.000 OLED panels per month, mainly for Samsung Electronics and Apple. Expansion of the A3 is scheduled for completion in October.
It is reported that Samsung will speed up the construction of the A5 compared to the A3 plant to produce larger OLED panels, aimed at the foldable device. Currently, smartphone have a common screen size of 5- 6inch, while foldable device use 9-10 inch screens.
Observers say that Chinese screen makers are exerting pressure to increase output and reduce costs, thus, Samsung needs to widen the gap to ensure the advantage of quantity and technology.