Large display makers in Korea and China, including Samsung Display, BOE, Visionox, and CSOT, are set to begin operating 8.6th-generation OLED production lines—seen as game changers in the OLED market—starting next year. Among them, the market for OLED deposition equipment, the key display gear for mass production, is expected to peak next year.
With Japan's Canon Tokki, a traditional powerhouse, leading the market based on its exclusive supply to Samsung Display, Sunic System in Korea is building a competitive landscape by expanding deliveries to China's BOE. Depending on how the two companies set up their equipment, purchasing of 8.6th-generation OLED tools by Visionox, CSOT, and LG Display is also expected to be affected.
According to the industry on the 9th, Samsung Display has finished placing orders with major OLED equipment companies, including Canon Tokki, and aims to move into full-scale installation, setup, and mass-production stabilization starting next year. Samsung Display has finalized the purchase of Canon Tokki deposition tools, which cost about 1 trillion won per unit. The prevailing view is that Apple, Samsung Display's largest customer, preferred Canon Tokki equipment because it was the most stable option in the 6th-generation OLED production process.
Positioning itself domestically as a challenger to Canon Tokki, Sunic System is strengthening its partnership with BOE. Sunic System supplied 8.6th-generation OLED deposition equipment to BOE last year and is said to have recently won additional orders. However, it is currently at the letter of intent (LOI) stage before a formal purchase order (PO), so revenue recognition is expected to occur during the period next year when full-scale installation and inspection take place.
OLED deposition is a process that heats organic materials to form an emitting layer on a substrate. Simply put, because the deposition tool creates OLED display pixels, it is considered core equipment. Canon Tokki has long held a dominant position in the OLED deposition market. Most tools on current 6th-generation OLED lines are from Canon Tokki. While domestic display equipment makers also supply some 6th-generation OLED deposition tools, Canon Tokki has maintained the leading position in terms of quality and performance.
The key question is whether Canon Tokki can maintain its status as the global leader in the 8.6th-generation deposition market. In particular, Sunic System has built a strong partnership with BOE since last year and, with additional orders this year, is serving as an enabler of China's OLED rise. If BOE stabilizes mass production of "two-stack tandem" OLED panels—one of next year's high-difficulty technologies—Sunic System's position is expected to expand further.
Industry watchers say a head-to-head race is also likely to form in investments by other Chinese display corporations beyond BOE. Visionox and CSOT are also proceeding with 8.6th-generation investments in succession, and LG Display is highly likely to join later. The industry expects the outcome to hinge on whether these companies place orders for the key deposition equipment with Canon Tokki or Sunic System.
According to market research firm UBI Research, global OLED shipments for IT are forecast to rise from 24 million units this year to 53 million units by 2029. By corporation, Samsung Display is projected to maintain a market share of more than 60%. LG Display, BOE, and Visionox are expected to follow.