Global Sources
EE Times-Asia
Stay in touch with EE Times Asia
EE Times-Asia > Optoelectronics/Displays

Samsung Display pours billions in Vietnam plants

Posted: 19 Aug 2015 ?? ?Print Version ?Bookmark and Share

Keywords:OLED? display? AMOLED? smart TV?

Samsung Display, a subsidiary of Samsung Electronics Co. Ltd, will invest $3 billion in Vietnam to increase the capacity of its display module production, a person privy with the matter told Reuters.

The unnamed source refused to be identified as he was not authorised to speak about the subject.

The extra $3 billion, which will be spent over several years until 2020, is in addition to a $1 billion investment it has allocated for a new OLED (organic light-emitting diode) display module assembly plant in Bac Ninh province, which started operations in the first quarter of the year. Details of the investment have not been decided yet, according to the source.

The move is in line with Samsung Electronics' efforts to boost its manufacturing capacity in Vietnam to lower production cost amidst an almost saturated smartphone market.

In the last three years, Samsung Display has had an average annual capital spending of $3.4 billion.

In November 2014, the biggest South Korean smartphone maker applied for approval to invest $3 billion, which will be used in constructing a second smartphone factory in northern Vietnam.

In May, Samsung Electronics began building its third factory in Ho Chi Minh City. Standing on a 70-hectare area in the Saigon Hi-Tech Park, the $1.4 billion facility is expected to start operating in the second quarter of 2016. It will manufacture the latest generations of smart TVs.

According to the Minister of Science and Technology, Samsung has invested about $13 billion in the country since venturing into the Vietnamese market a decade ago.

Display materials to grow in 2015

According to research firm IHS Inc., the overall consumption of active-matrix light-emitting diode (AMOLED) will surge in the second half of the year as LG Display increases production of white organic light-emitting diode (WOLED) TV panels.

The WOLED organic materials market reached $58 million in the first half of 2015, but the market will grow three times in the second half of 2015, reaching $165 million. IHS predicts that the WOLED organic materials market will grow at a compound annual growth rate (CAGR) of 79 per cent from 2014 to 2019.

"Although the WOLED organic materials market is still at a fledgling state, it will grow considerably in tandem with a rise in WOLED panel production, beginning in the second half of 2015," said Kihyun Kim, senior analyst for display chemical and materials at IHS Technology. "Since WOLED technology is mainly used for large-area AMOLED displays, particularly TVs, this rapid growth in the WOLED market will lead the continued growth in the overall AMOLED materials market."

- Stephen Padilla

Article Comments - Samsung Display pours billions in Vi...
*? You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.

Back to Top