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Flexible AMOLED panels push up the windward opening, expected to grow 69.9% in 2018
With the mass production of BOE AMOLED, China has finally taken a significant step forward in its own AMOLED technology, bringing hope for greater self-reliance in the display industry. This development has triggered a global expansion of AMOLED panels, especially in the flexible segment. According to the latest report from IHS Markit, the construction of flexible AMOLED panel factories is outpacing demand. In 2018, the production capacity of flexible AMOLED panels is expected to be 44% higher than the global area demand.
The net area capacity of flexible AMOLED panels is projected to reach 4.4 million square meters in 2018, doubling from 2017. However, the growth in demand has not kept pace with supply. In 2018, the market demand was around 2.4 million square meters, representing a 69.9% increase from the previous year.
Jerry Kang, a principal analyst at IHS Markit Display Research, noted that while panel manufacturers anticipated faster penetration of flexible AMOLED into the smartphone market, many brands in 2017 and 2018 focused on 18:9 aspect ratio LCD or rigid AMOLED screens rather than flexible options. The main reasons include the high cost of flexible AMOLED modules and ongoing concerns about quality and reliability. For instance, producing a flexible AMOLED panel on the same sixth-generation line costs over 1.5 times more than producing a rigid one.
Looking ahead, Jerry Kang believes that ultra-widescreen or full-screen smartphones will continue to compete with curved models. Due to the high cost, only flagship models from major brands are likely to feature flexible or curved AMOLED panels. This creates challenges for new or smaller-scale suppliers trying to meet strict quality and reliability standards. As a result, these companies may face lower capacity utilization rates, and the learning curve for improving production efficiency will take longer. This imbalance between supply and demand is expected to keep the 2018 flexible AMOLED panel production capacity 44% above actual demand.