Among display corporations worldwide, only Samsung Display and China's BOE are investing in the establishment of 8.6-generation organic light-emitting diode (OLED) production plants, and it has been identified that BOE, which has been designing its production line as if it were copying Samsung Display's factory, is choosing a different route.
The 8.6-generation plant is specialized for the rapidly growing IT OLED sector, including tablets, laptops, and monitors. However, BOE is investing significantly in existing equipment for mobile OLED production rather than IT OLED. Industry analyses suggest that BOE is feeling pressure regarding securing clients compared to the tens of trillions of won required for establishing the 8.6-generation OLED plant.
According to the industry on the 12th, BOE has nearly completed its first equipment orders, including deposition equipment, which is crucial for OLED production. However, examining the equipment order details, it appears that BOE is ordering a large number of devices necessary for producing OLED panels for smartphones, in contrast to Samsung Display, which is going 'all-in' on IT OLED. While Samsung Display has completed negotiations on supplying IT OLED quantities for iPads, MacBooks, and other products with Apple, analyses suggest that BOE has yet to secure global 'big player' clients outside the domestic Chinese market.
Chinese corporations are launching aggressive offensives centered around their domestic companies, expanding their market share in the IT OLED sector. In fact, this year, Korean companies' market share in the laptop OLED market has fallen below 90% for the first time, standing at 75.8%. However, it is reported that there remains a significant technology gap in the high-spec OLED field between Samsung Display and its competitors.
Kang Seong-cheol, a research committee member at the Korea Semiconductor Display Technology Association, noted that 'industry consensus suggests that Korean companies are about 2-3 years ahead in technology compared to Chinese manufacturers,' adding, 'Major set companies like Apple are also demanding high-level technologies such as tandem OLED and low-power backplane technology (LTPO), so there will likely be a bottleneck for Chinese companies entering the market.'
Believing in the support of the Chinese government, BOE, which had been pouring investment funds recklessly, is now becoming cautious regarding the establishment of its 8.6-generation plant. Unlike Samsung Display, which is importing deposition equipment from Canon Tokki estimated at 800 billion to 1 trillion won each, BOE has opted for deposition equipment from Korean company Senik Systems, which is at a lower price point. OLED panels produced using Senik Systems' equipment are not being used in major products like Apple iPhones, iPads, or MacBooks.
Deposition equipment is a device that forms pixels by heating organic substances in a vacuum and attaching them to the panel substrate, making it the most critical equipment in the OLED panel manufacturing process. The key is evenly attaching the pixels, and it is reported that during the investment process, Samsung Display reached an agreement with Apple to adopt the proven Canon Tokki deposition equipment, even in the 6th generation OLED equipment.
An industry official stated, 'It appears that BOE, which nearly copied Samsung Display's production line during past investments in 6th generation OLED equipment, is still adjusting its investment pace while observing Samsung Display's equipment ordering status and technology adoption.' However, he added, 'It seems that they are struggling to deliver results that meet Apple's stringent requirements in the IT OLED sector.'
Meanwhile, Samsung Display is in the process of completing the setup of deposition equipment received from Canon Tokki within the year and is steadily working towards full-scale operations in 2026. Samsung Display, which is establishing an 8.6-generation OLED production line at its Asan plant's A2 line in Chungnam, has currently imported two pieces of deposition equipment and aims to mass-produce OLED panels for Apple MacBooks starting in 2026.