Over the next few years, Samsung Display might begin producing Gen 8.5 (2200x2500mm) OLED panels. According to reports, the corporation has started discussing pricing with the Japanese manufacturer Ulvac for the Gen 8.5 OLED deposition machinery. This month, it will make a final decision over the plan, according to The Elec.
The innovative device deposits organic molecules vertically using full-cut substrates. According to reports, this technique makes it more affordable to manufacture larger OLED screens. Gen 6 (1500x1850mm) substrates are now used by Samsung Display to create screens for smartphones, tablets, and PCs.
Ulvac wants KRW 700–800 billion (approximately $540–615 million) per unit for the Gen 8.5 deposition machines, according to the new report . That is much greater than the Gen 6 machine price of KRW 500 billion ($385 million). The corporation appears to be considering the rising costs of OLEDs in addition to the costs of development and production.
Advertisement Samsung claims to be the sole purchaser of Ulvacs Gen 8.5 OLED deposition equipment in the meantime. Furthermore, it is assisting in the development even though the machines aren’t finished. As a result, it is only prepared to pay around KRW 400 billion ($307) for each unit. That’s nearly half of what Ulvac is requesting.
However, if a deal can be reached and Samsung Display receives approval from the conglomerate’s control tower to invest in Gen 8.5 OLED panels, it may place the orders by the end of the year or early in the next one. Mass production is expected to start in 2024. The company will produce 15,000 substrates monthly during the first phase of production. But depending on the market, that number can quadruple in a few months.
Apple will receive Gen. 8.5 OLED panels from Samsung Display. When we discuss OLED screens, one of the first companies that springs to mind is Samsung. The South Korean giant manufactures what are perhaps the best OLED screens for portable electronics. Some of its largest competitors, such as Apple, are supplied with the panels by this company. In the upcoming years, the latter intends to introduce its first-ever OLED iPads, and Samsung and LG are two of its suppliers.
Advertisement These iPads will, however, have panels built from Gen 6 OLED lines already in use. In late 2024, Samsung plans to release the Gen 8.5 OLED panels for the second-generation OLED iPads. Therefore, whether the Korean company implements this idea may also depend on Apple’s plan.
As a precaution, Samsung is also collaborating with Canon Tokki, a different Japanese company, to create Gen 8.5 half-cut equipment. This device horizontally deposits organic material. The first vertical material depositing equipment in the industry is Ulvac’s full-cut machine. It has not been tried and may not function as expected. Samsung does not want to put all of its eggs in one basket because of this.