Global production of AMOLED panels to almost triple next year

Global production of active-matrix organic light-emitting diode (AMOLED) panels is expected to triple next year with Samsung Mobile Display Co. (SMD) ramping up its next generation display plant, a research firm said Monday. According U.S.-based market research firm DisplaySearch, production of AMOLED panels will rise to 2.6 million square meters in 2011 from 890,000 square meters this year when SMD's new 5.5-generation AMOLED plant begins to operate at full capacity early next year. AMOLED panels, mostly used in mobile phones and small-screen tablet computers such as Samsung Electronics' flagship Galaxy series, are seen as best suited for streaming videos because they show vivid images and colors. SMD, a joint venture between Samsung Electronics Co. and its sister unit Samsung SDI Co., claimed 28 percent of the global market for AMOLED displays for mobile phones in 2010. The new SMD factory which began operation in May this year is expected to reach a maximum production capacity of 80,000 substrates by the first half of next year, DisplaySearch said. Other potential AMOLED manufacturers are closely watching SMD's expansion and hoping that they will leverage advances in equipment technology, DisplaySearch said. Liquid-crystal display (LCD) makers such as South Korea's LG Display Co. and Taiwan's AU Optronics Corp. and Chimei InnoLux Corp. are forecast to engage in the AMOLED sector within two years, it said. The firm said that the fast-growing AMOLED business can be a good alternative for flat panel display manufacturers, who have been suffering net losses for four straight quarters. Supply of AMOLED was very tight in 2011.