By Kim Yoo-chul
Staff Reporter
In a step to secure the next ``golden goose’’ in the consumer electronics market, two local electric giants are strengthening their active matrix organic light-emitting diode (AM OLED) production lines.
Samsung SDI will start producing a two-inch AM OLED for mobile use at its plant in Cheonan from mid-October and also plans to expand the production.
``Depending on the market situation, we will gradually expand the 2-inch AM OLED production by constructing additional lines,’’ a Samsung SDI official said Wednesday, adding the production capacity of its line was a maximum 1.5 million units per month.
``We have already received orders from 10 local and overseas mobile manufacturers and now are in the process of meeting a deadline,’’ the official said.
LG Electronics was also considering expanding its AM OLED production capacity by as much as 2.4 million units per year in the long-term, according to company sources.
``It is possible to increase production capacity given the soaring demand for AM OLEDs,’’ said an LG official.
In July, LG shut down a passive OLED line due to low profits and has been in talks to transform it to produce AM OLEDs.
In a separate move, LG.Philips LCD (LPL), a joint venture with Dutch-based Philips, will start full production of three-inch AM OLEDs by the end of the year or early next year, according to a high-ranking official from the flat panel maker.
Moreover, LPL is close to finalizing negotiations to take over the OLED division from LG Electronics. The talks faltered as both companies failed to narrow differences over the payment though LG Group gave a green light to hand over the division to LPL last year.
OLED screens are seen as promising technology because they are self-luminous and, unlike liquid crystal displays (LCDs), do not require expensive backlighting. This results in thinner displays that consume almost 40 percent less power, key advantages for mobile phones.
AM OLEDs, however, are regarded as the most promising next-generation technology. OLED displays are already being used in some smaller portable devices, such as music players from Samsung Electronics.
According to a recent report from DisplaySearch, the sale of OLED displays is expected to grow 117 percent in 2008 mostly due to the introduction of AM OLED displays for mobile phones and digital cameras.
Sony, which has failed to grab the top position in a battle with Samsung Electronics in the LCD TV market, recently released the industry’s first 11-inch OLED TV as a symbolic sign to catch up with Samsung. The Japanese electronics giant will begin by producing 2,000 OLED units a month.
``Sony’s move is symbolic. Samsung and LG will increase AM OLED production as the two handset giants are accelerating efforts to produce luxurious premium phones,’’ said an official from the market researcher, adding it would take at least five years before the next-generation TVs become commercially viable.