An analysis suggests that earnings will improve sharply for manufacturing partners that supply materials, equipment, and parts to Samsung Display. The driver is Samsung Display's move this year to begin mass production, an industry first, of 8.6-generation IT organic light-emitting diode (OLED) and OLED for Apple's foldable phone. With demand for existing mobile OLED holding firm and Samsung Display expected to effectively have a monopoly on supplying the new 8.6-generation OLED and foldable OLED for mass production, forecasts point to higher shipment volumes for the partners.
According to the industry on the 27th, earnings for Samsung Display's materials, parts, and equipment partners such as Duksan Neolux, BH, Fine M-Tec, and Philoptics are expected to improve this year. Duksan Neolux supplies materials essential to OLED processes; BH and Fine M-Tec respectively supply parts such as substrates and hinges; and Philoptics supplies laser processing equipment, making them core domestic manufacturing partners for Samsung Display.
A display industry official said, "It is true that Apple's dependence on Samsung Display's OLED panels is growing," and added, "In particular, for foldable phones that will be supplied exclusively, calls for supply chain diversification could rise, concentrating benefits on materials, parts, and equipment partners that are hard to replace."
Estimates from the securities industry indicate that this year's operating profit forecasts for major partners will increase sharply from a year earlier. Duksan Neolux's operating profit forecast for this year is 87.1 billion won, about 43% higher than last year's 60.7 billion won. BH and Fine M-Tec are forecast at 109.9 billion won and 42.2 billion won this year, up 106% and 130% from a year earlier. Philoptics, which posted a loss last year, is also projected to swing to a profit.
Samsung Display is expected to have an exclusive on both Apple's MacBook OLED mass-produced on the 8.6-generation line and the Apple foldable phone OLED newly entering mass production this year. Through the 8.6-generation line, Samsung Display plans to mass-produce 14-inch and 16-inch panels for MacBook Pro and is said to supply the entire volume, estimated at around 3 million units.
OLED panels for this year's new iPhone are also expected to see higher supply volumes due to weakness at Chinese competitors. Unlike previous years when four models were released, Apple's iPhone 18 series this year is expected to include only two models, Pro and Pro Max, amid analysis that China's BOE will struggle to enter the supply chain. BOE entered the iPhone 17 series supply chain last year but experienced supply disruptions due to quality issues, and because the OLED for this year's iPhone 18 Pro and Pro Max is more difficult to manufacture than the previous generation, the likelihood of BOE falling out of the supply chain has increased.
A display industry official said, "With Samsung Display effectively having an exclusive on the newly mass-produced 8.6-generation and foldable phone OLED, OLED shipments will increase this year," adding, "Earnings momentum will build around Samsung Display's key materials, parts, and equipment partners."