Since the release of Apple's iPhone X, OLED screens have become the new favorite in the mobile phone market. Analysts predict that next year, full-screen smartphones may see a surge in popularity. According to a reporter from *Daily Economic News*, several listed companies are actively working on mass-producing OLED panels. However, some industry insiders warn against the risks of over-investment in the sector.
BOE Flexible AMOLED Screen Source: Company's official website
Enterprises are rushing to invest in the OLED field. When BOE was interviewed, it revealed that its sixth-generation flexible AMOLED production line in Chengdu, Sichuan, has been operational since May and is now entering mass production. A second sixth-generation flexible AMOLED line in Mianyang, Sichuan, has also started construction. With a total investment of 4.65 billion yuan, these lines are expected to produce 48,000 units per month. These developments will help BOE solidify its position in the flexible AMOLED market and supply high-quality displays to global smartphone manufacturers. In addition to BOE, companies like Huaxing Optoelectronics are also accelerating their efforts in OLED panel production. Smaller firms such as Hefei Optoelectronics and Rouyu Technology are also entering the space. It is anticipated that by 2020, Chinese panel makers could reach scale and compete with Samsung in terms of production capacity. This would allow Chinese smartphone brands to access more locally produced OLED panels. According to China Securities Network, Peng Xihui, vice president of Tianma Microelectronics Group, mentioned at the 2017 International Display Industry Summit that Tianma Shanghai’s 5.5-generation AMOLED line has been producing for two years, while the 6th-generation line in Wuhan has been successfully activated and is being developed into one of the world’s most advanced green smart factories. Even former soy milk giant Black Bull Food (002387.SZ) has shifted its focus to the display industry after completing its "defooding" strategy last year. The company has raised 15 billion yuan to invest in 5.5- and 6th-generation OLED projects. The plan has received approval from the China Securities Regulatory Commission. The 6th-generation OLED project in Hebei Gu'an has been completed and is expected to begin mass production in the second half of 2018. According to Quzhi data, global OLED shipments this year are forecasted to reach 470 million units, with flexible OLEDs accounting for about 30%—around 150 million units—and growing at a rate of approximately 177%. The penetration of flexible OLEDs is expected to rise from 13% to 30%. Li Yaqin, deputy general manager of Quzhi Consultation, noted that mainland panel makers’ shipments are expected to reach nearly 9 million units this year, a significant increase from 2.5 million in 2016. While current OLED production capacity in mainland China is limited, nearly ten new production lines are set to come online, which could lead to substantial growth. Chiang Yubin, an analyst at Jibang Consulting, believes that although Samsung still dominates the small-sized OLED market, Chinese companies must catch up by at least 2–3 years. While many companies are investing heavily in OLED, industry experts have warned of potential overinvestment. At the 2017 International Display Industry Summit, Peng Hongbing, deputy director of the Ministry of Industry and Information Technology’s Electronic Information Department, pointed out that China’s display industry still faces challenges, including an overheated investment trend, weak innovation capabilities, and reliance on imported materials and equipment. Qiu Yubin told *Daily Economic News* that with slowing demand for large-size liquid crystal panels, continued investment in older generation lines could lead to oversupply. This might put pressure on lower generations in the coming years, prompting the need to eliminate outdated production capacity. He further explained that as yield rates for lower generation lines reach their limits, higher generation lines offer better cost efficiency. As costs for high-generation lines decrease, the competitive advantage of older lines will gradually diminish. Experts also highlighted that the upstream support for the mainland LCD industry remains a bottleneck. Key materials and core equipment are still in early stages of development, with many advanced technologies controlled by Japanese and South Korean manufacturers. Zhang Hong, a consultant at Quzhi, noted that while national policies have helped improve material support in recent years, there is still room for improvement. Some critical materials require further technological advancement. With the rapid development of OLED technology and increased domestic production, the future of the display industry looks promising—but caution is needed to avoid overcapacity and ensure sustainable growth.This DC Source System output current is up to 324A max by connecting the internal single unit rack mount DC Power Supply in parallel. Output voltage is up to 750VDC max (recommend not to exceed 800V) by connecting the internal single unit in series.
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