Tight supply of AMOLED mobile phone panels expected in 2H13, says DisplaySearch
AMOLED phone panel shipments are projected to reach more than 217 million units in 2013, up from 134 million units in 2012, which, along with increasing screen sizes, will lead AMOLED demand to grow from 263,000 square meters in the first quarter of the year to 557,000 square meters in the first quarter of 2014, according to research firm DisplaySearch.
The supply of AMOLED panels is expected to tighten in the second half of 2013, with the supply/demand ratio expected to fall to 1% in in the fourth quarter of 2013. This level means there will be no slack for any supply disruptions, and could lead to shortages, said the firm.
"Samsung Display still produces the vast majority of commercially available AMOLEDs, and these are mainly used in smartphones. With the recent release of the Galaxy S4 with a 5-inch Full HD AMOLED display, Samsung will need to run its AMOLED fabs at maximum capacity to keep up with expected high demand," stated Charles Annis, vice president of manufacturing research at DisplaySearch.
"As the supply/demand ratio is expected to tighten dramatically, Samsung is moving to significantly extend capacity at its A2 5.5G fab from 2013-2014. Additionally, the company may also accelerate its plans for A3, another new AMOLED production line," added Annis.
Availability of large-area flat panel displays (mostly TFT LCD) is also expected to tighten throughout 2013. As prices for TVs continue to fall, consumers are moving to larger sets, helping to drive an increase in area demand. Large-area supply/demand is forecast to decline from 21.9% in in the first quarter of 2013 to 11.8% in the third quarter of the year. As a result, average fab utilization will likely rise above 85%. With TFT capacity forecast to grow only 4% in 2014 and demand likely to increase 10%, the tightening is forecast to continue to the third quarter of 2014, when large area flat panel display supply/demand is projected to fall to a very tight 6% noted the firm.
"Rapid growth of smartphones and tablets, in conjunction with the continued shift towards larger average TV sizes, are driving a recovery of the FPD industry. In fourth-quarter 2012, average operating margins for flat panel display makers turned positive for the first time since third-quarter 2010, and this trend is forecast to continue. Additionally, the outlook for fab utilization, equipment spending and technology upgrades is improving in 2013 and potentially will continue into 2014," added Annis.
http://www.digitimes.com
The supply of AMOLED panels is expected to tighten in the second half of 2013, with the supply/demand ratio expected to fall to 1% in in the fourth quarter of 2013. This level means there will be no slack for any supply disruptions, and could lead to shortages, said the firm.
"Samsung Display still produces the vast majority of commercially available AMOLEDs, and these are mainly used in smartphones. With the recent release of the Galaxy S4 with a 5-inch Full HD AMOLED display, Samsung will need to run its AMOLED fabs at maximum capacity to keep up with expected high demand," stated Charles Annis, vice president of manufacturing research at DisplaySearch.
"As the supply/demand ratio is expected to tighten dramatically, Samsung is moving to significantly extend capacity at its A2 5.5G fab from 2013-2014. Additionally, the company may also accelerate its plans for A3, another new AMOLED production line," added Annis.
Availability of large-area flat panel displays (mostly TFT LCD) is also expected to tighten throughout 2013. As prices for TVs continue to fall, consumers are moving to larger sets, helping to drive an increase in area demand. Large-area supply/demand is forecast to decline from 21.9% in in the first quarter of 2013 to 11.8% in the third quarter of the year. As a result, average fab utilization will likely rise above 85%. With TFT capacity forecast to grow only 4% in 2014 and demand likely to increase 10%, the tightening is forecast to continue to the third quarter of 2014, when large area flat panel display supply/demand is projected to fall to a very tight 6% noted the firm.
"Rapid growth of smartphones and tablets, in conjunction with the continued shift towards larger average TV sizes, are driving a recovery of the FPD industry. In fourth-quarter 2012, average operating margins for flat panel display makers turned positive for the first time since third-quarter 2010, and this trend is forecast to continue. Additionally, the outlook for fab utilization, equipment spending and technology upgrades is improving in 2013 and potentially will continue into 2014," added Annis.
http://www.digitimes.com
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