Samsung Display to expand capacity to meet growing foldable phone demand

Samsung Display's Asan campus in South Chungcheong Province / Yonhap

Samsung Display will expand its manufacturing facility in Asan, South Chungcheong Province, to meet growing demand for foldable smartphone panels and further cement its position as the market leader in the sector.

According to industry officials, Tuesday, the company held an investment reviewing committee on Aug. 7 and decided to resume the halted construction of a new plant in its Asan site, which will be named as A7.

The new plant initially broke ground in 2017 but was suspended in 2021 in the wake of the COVID-19 pandemic. The plant is expected to be completed in 2028.

Samsung Display has yet to decide which production lines will be installed at the expanded facility, but industry officials expect it to be used for foldable and micro OLED panels.

Last month, Samsung Electronics announced plans to invest 140 trillion won in the Chungcheong region, and its subsidiary Samsung Display also said it would invest 67 trillion won in Asan and Cheonan. As part of the plan, Samsung Display has said it would build production lines for next-generation smartphone displays and ultra-high-resolution micro displays.

Models promote Samsung Electronics' Galaxy Z8 foldable smartphone series at the company's showroom in Seocho District, Seoul, Aug. 10. Courtesy of Samsung Electronics

Samsung Display’s decision to resume the delayed construction comes as demand is expected to increase with the growth of the foldable smartphone market.

Samsung Display currently produces flexible and premium OLED panels for Samsung’s Galaxy S and Z series, as well as Apple’s iPhones, at its A3 line in Asan. Since a foldable device requires wider panel areas than bar-type phones, a higher share of foldable panels means fewer finished panels can be produced from each mother glass sheet.

Adding to this, advanced foldable panels require more complex manufacturing processes, meaning Samsung Display needs additional production equipment. However, the A3 line has already reached its physical limits for adding new equipment, prompting the company to expand its production capacity.

According to market tracker Counterpoint Research, global foldable smartphone panel shipments are expected to reach 27.5 million units by the end of this year, up 24 percent from 2025. Revenue is projected to grow at a faster pace of 48 percent, driven by higher average selling prices as premium models from Apple and Samsung account for a larger share of the market.

Device sales are also showing strong momentum. Preorders for Samsung Electronics’ Galaxy Z8 series, launched last month, reached 1.44 million units in Korea, up 38.5 percent from 1.04 million units for the previous Z7 series.

Apple is also expected to unveil its first foldable iPhone as early as September, with Samsung Display reportedly set to be the exclusive supplier of panels for the device.

Samsung Display’s move to expand capacity preemptively also comes amid intensifying competition with Chinese panel makers.

According to Counterpoint Research data, China’s BOE accounted for nearly 45 percent of global foldable smartphone panel shipments in the first quarter of 2026, ranking first in the market. However, Counterpoint Research expects Samsung Display to take the annual lead with a 31 percent share once Apple launches its first foldable iPhone. Apple alone is expected to account for 29 percent of total foldable panel procurement this year, underscoring its importance as an influential customer for Samsung Display.

Apple is reportedly under a three-year exclusive supply agreement with Samsung Display for foldable panels, reflecting the Korean company’s technological edge in areas such as durability, quality, production yield and crease reduction.

However, with Chinese rivals rapidly narrowing the technology gap, Samsung Display is seen as moving to secure sufficient production capacity through preemptive investment, further strengthening its position as the market leader in foldable panels.

“With Apple expected to launch its first foldable iPhone this year, the foldable market is likely to expand further, and Samsung Display appears to be investing preemptively to secure additional production capacity,” an industry official said. “As foldable smartphones have the potential to become mainstream, the company appears to be seeking to strengthen its market leadership by expanding capacity ahead of demand.”