OLED Industry Gets Policy Support

OLED Industry Gets Policy Support

The domestic color TV market is ushering in a new technology race, and this time it is OLED. A few days ago, relevant national departments issued the "Circular on Implementing Major Engineering Packages for Upgrading and Improving Manufacturing Industries," focusing on the development of next-generation display mass production technologies such as organic light-emitting diode display (AMOLED), and building high-generation production lines. At the same time, Apple's mobile phone, which is a pioneer in the global electronics market, will also use OLED materials. The agency expects that by 2020, the AMOLED market is expected to reach 67 billion US dollars, and the compound annual growth rate will exceed 45%. Faced with huge market space, domestic color TV manufacturers including TCL, Skyworth, Konka and other domestic color TV companies have already laid out their OLED industries. Skyworth and Konka have already launched domestic OLED TVs, while TCL has deployed OLED display technologies.

Recently, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued the Notice on Implementing Major Engineering Packages for Upgrading and Upgrading Manufacturing Industries (hereinafter referred to as the “Notice”). It is pointed out that from 2016 to 2018, ten key projects will be organized and implemented through innovative project organization and financial support. Through the implementation of major engineering packages, efforts are made to strive for a three-year effort. The value-added of manufacturing industries above designated size will increase at an average annual rate of more than 7%. The average annual increase in investment in technological transformation of enterprises will be about 15%. The ability of independent innovation and the output value of new industrial products will increase significantly. The organic light emitting semiconductor display (AMOLED) is located in the electronic information upgrade project. The notification indicates that it is necessary to develop the OLED evaporation process unit equipment components, the automatic transfer system for the evaporation equipment, and the layout flexible display.

CITIC Investment said that the "Notice" shows that the development of the OLED industry has attracted the attention of the national level, and will be strongly supported by the country in the future, and the development speed is expected to exceed expectations.

Action 1:

Enterprise wants to crack big size OLED bottleneck

It is reported that domestic color TV companies have already arranged to print OLED industry. Among them, Guangdong Juhua Printing Display Technology Co., Ltd., jointly established by TCL's China Star Optoelectronics and Tianma Microelectronics, has announced that it has signed strategic cooperation agreements with such top companies as DuPont, Sumitomo Chemical, Nissan Chemical, and Cody, etc. It fully supports Juhua's materials and process requirements in the development of printed OLED technology, and tailors relevant R&D equipment for Guangdong Juhua. Li Dongsheng, chairman of TCL Group, expressed that he hopes to use three to five years to develop a new generation of printed display technology. In the future, the print display will crack large-scale OLED bottlenecks.

Action 2:

Enterprise layout OLED TV market

In the field of OLED TVs, Chinese companies are even more advanced. It is reported that as early as December 2013, Skyworth Group launched domestic OLED TVs for the first time in the Chinese market. At that time, the domestic market was still in the lead-in period of OLED TV products. Subsequently, Skyworth announced the mass production of full HD (FULLHD) version of the OLED TV, by August 2015, Skyworth Group announced the world's first mass production of 4 color 4KOLED organic TV, and for the first time to the outside world the company showed the entire OLED organic TV production line.

At the same time, Shenzhen Konka also introduced OLED TVs. In April this year, Shenzhen Konka A (000016) announced that the company plans to privately issue shares to six controlling shareholders including OCT Group at a price of 4.71 yuan per share. The total amount of funds raised will not exceed 3 billion yuan. R & D smart TV and brand and channel construction, which OLED TV will be a key breakthrough in Shenzhen Konka.

Upstream and downstream:

Panel makers are actively investing

Upstream and downstream of the entire OLED industry, many companies continue to have actions. Among them, BOE announced in March this year that it will invest RMB 24.5 billion to set up a flexible OLED panel production line in Chengdu. The target is to start production of the 6th generation flexible OLED in 2019, with a monthly output of 45,000. At the same time, BOE revealed that it plans to begin supplying 55-inch OLED organic TV panels in the second half of 2016. Shen Tianma A stated that the company started building the first 4.5-generation AMOLED pilot line in Shanghai in 2010, and began to invest in a 5.5-generation AMOLED mass production line in 2013, forming the 5.5th-generation 1/4 of monthly processing 15,000 pieces. After cutting, OLED is used to vapor-deposit glass substrate. At present, the product line has been produced.

The industry has stated that from the CRT era to the LCD era, European and American technology is basically the original, and Japan has industrialized it, followed by South Korea. China's display industry is in a very passive situation. To change this situation, domestic top display experts believe that in the next generation of display, we must change the above development model.

Huge market space

A big plus for the OLED industry is the news that Apple will launch an iPhone equipped with an OLED curved screen in 2018. Its sales volume is expected to be 100 million units, accounting for 30% of the total sales forecast for that year.

According to the analysis, the above ratio will increase further to 80% by 2020. Institutions believe that in the era of CRT, China has been in a state of catching up. In the era of LCD, our country is taking the line of digestion and absorption and innovation. In the OLED era, Chinese enterprises started earlier and are expected to achieve overtaking. Some institutions expect that by 2017, the OLED market will show double growth. By 2018, the large-size OLED screen market with TV as the core will be fully launched. In the next 10 years, OLED products are expected to account for 30% to 40% of the total display market.

Institutional perspective

Haitong Securities Research Report pointed out that traditional display industry sales growth is weak, OLED is expected to emerge strong penetration