Hon Hai / SHARP will hit 200 billion yen investment OLED panel

Hon Hai Ken who spent heavily to buy SHARP (Sharp) is one of the main reasons is optimistic about SHARP panel technology, expect to be able to supply the panel to Apple (Apple), even targeting iPhone may be OLED orders by the panel; and Hon Hai / SHARP also announced that it will spend 200 billion yuan investment in the OLED panel, the target began in 2018 production. But for Hon Hai / SHARP for the OLED production time, Mizuho bank is not so optimistic, that Foxconn / SHARP OLED production time is likely to wait until after 2020.

The Nikkei News reported on 25, Mizuho Securities analyst Nakane Yasuo said that the apple iPhone use panel estimated the fastest in 2017 and most of 2018 will slow gradually from the current LTPS (LTPs) changes to the OLED panel, and Hon Hai / SHARP plans to invest 200 billion yen to construct OLED panel production line, R & D test production line as well as mass production line, production line and production capacity to 5.5 inch of 95 million pieces per year, and the capacity for the 6 generation (G6) glass substrate conversion for the 50 thousand / month level, but because of the actual Foxconn, SHARP has OLED panel production experience, and the development stage of technology is inferior to 2 Korean factory and Japan (JDI) Diaplay Inc, the OLED panel to start mass production period is likely to fall after 2020.

Nakane Yasuo said that in the wisdom of mobile phone OLED panel market, run in the front of the Samsung A3 factory (using G6 Technology) per month to forecast is likely to be in the first half of 2018 before the end of 180 thousand (amplified to 5.5 inch conversion for the annual output of 420 million), of which the estimated monthly supply of 6-9 million tablets for Apple iPhone use, and the current exposure device of OLED manufacturing equipment supply and demand is very tight, but at least Samsung has control of 90 thousand piece / month manufacturing equipment supply, it is ready to foolproof, so the rest of the negotiation is only between quantity, and Apple's price.

In addition, Nakane Yasuo estimates, LG Display (LGD) may be the fastest in the second half of 2018 to construct the OLED supply system can supply a large number of iPhone required; and yet Japan's JDI OLED panel production performance, still belong to the research and development stage, G4.5 production line in the Ishikawa factory has only 4000 tablets / monthly production capacity, and estimated future JDIOLED test production line will not set in the Ishikawa factory, but the flexible panel MaoYuan factory in the development, and try to predict the production line the fastest in 2017 Q1 can be enabled only after construction of production line and production line, if set in mobara factory, monthly capacity of 1.5-2 000, but if the use of plant words, Baishan monthly capacity of 25 thousand pieces, but no matter what the factory production scale, are far lower than the Samsung, LGD, the iPhone panel supply market share may decline.

Nakane Yasuo pointed out that the total Samsung (at least 60 thousand pieces), LGD (minimum 30 thousand) and JDI (at least 15 thousand) capacity calculation, using OLED panel of three companies each year can produce about 250 million pieces of iPhone, and considering the high dependence on iPhone assembly orders of Hon Hai, apple risk based on the view of whether will ask "Hon Hai / SHARP alliance as its panel suppliers, can only say" very delicate".

According to the Castrol XQ global winner system offer Foxconn 25 closing down 0.86% to NT $80.3; as of 25 Taipei time 13:10 on the date, SHARP rose 4.83% to 152 yen, 155 yen earlier rose to the highest level, a record high since March 14th.

The Nikkei news said in April 1st report, the OLED panel is positioned as a pillar of the reconstruction of SHARP Foxconn, Hon Hai / SHARP plans to drop 200 billion yen to invest in OLED panel, expected by the large-scale investment after Samsung and other manufacturers in South Korea, but according to industry related sources, when operations before the crisis, leading to technical personnel inside SHARP master OLED have left to leave, so "OLED production technology research and development is very difficult".

SHARP announced in February 25th, Hon Hai SHARP plans to invest 200 billion yen / R & D, production line, set the OLED panel in the trial for the Kameyama plant production line and production line, and plans to begin production in early 2018, target per month about 10 million pieces of 5.5 inch OLED panel production capacity in 2019 before the end of year for the use of OLED panel, annual revenue target of 260 billion yen for the machine to produce about 90 million 5.5 inches of wisdom.

Thomson Reuters3 30 report, currently Samsung's Samsung Display and LG Display (LGD) has been the production of OLED panels, and swept more than half of the global market share, while SHARP is Hon Hai / 2018 plan to mass production, there is even trying to make the production line have not yet, so you want to catch up has a substantial lead in running the head of the South Korean manufacturers is not easy; and the Taiwan securities legal analyst Kylie Huang pointed out that Foxconn / SHARP panel in the OLED field should be and Samsung and other manufacturers to compete stage fear for more than 2 years of time, Kylie Huang said, "2 years is very difficult, if possible, 3 years 4 years should be no problem".

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