JDI to postpone OLED mass production plan and get Apple's next-generation LCD order

According to Asahi Shimbun, according to Asahi Shimbun, Japan's LCD panel maker Japan Display Inc originally planned to mass produce OLED panels in 2019, but JDI has begun to consider delaying the production plan. The main reason is that OLED panel demand is not as expected. As a result, the South Korean factory almost monopolized the OLED panel market for smartphones. However, due to the high price, Apple iPhone X with OLED panels was not selling well.

It is no secret that Apple will launch three new iPhone models this year. The iPhone XS and iPhone XS Plus will carry AMOLED screens, while the iPhone 9 will continue to use LCD screens. Although the number of models using AMOLED screens has increased to two Models, but Apple's purchase of AMOLED panels has dropped sharply. It is reported that the total purchase volume of the two models of AMOLED panel is only about 50 million, this kind of purchase is equivalent to half of the original iPhone X.

Lin Zemin, manager of the Taiwan Industrial Technology Research Center, pointed out that starting from the fourth quarter of 2017, we can see that the relevant suppliers continue to lower the forecast of the output value of the iPhone X. In 2017, Samsung almost completely monopolized the small size. The market supply of OLED panels has a capacity ratio of 92%. However, the largest user, the iPhone X, is not selling as expected. It can be seen from the output value of the relevant suppliers that the output is being significantly reduced, and even the fastest will be in 2018. The production was discontinued in the second quarter. Therefore, in 2018, Samsung's small-sized OLED panel may face the predicament of oversupply.

JDI's fiscal year 2017 (fiscal year ending in March 2018) was in a loss for the fourth consecutive year. Therefore, it planned to recoup its disadvantages through volume production of OLED panels, and is currently negotiating with Chinese panel makers and other companies. The partners were finalized in the month, but due to the poor demand for OLEDs, LCD panels began to show signs of recovery. According to JDI officials, 'cooperation and negotiation will take more time'. This means JDI's cooperation plans with three Chinese panel makers. May be postponed.

On March 30th, JDI announced that it will consider a total of more than 5 billion yen in fund scheduling issues on the board of directors expected to be held today, which includes a planned third party quota increase of over 30 billion yen and disposal of assets. According to Nikkei News, Apple has already begun its 'Return to LCD' this year. The iPhone that is expected to be sold this fall has decided to adopt JDI's LCD panel, and JDI received orders that exceeded expectations. As JDI received a large number of orders for next-generation iPhone LCD panels, The funds raised by the above capital increase will be used to purchase the materials needed to increase production of LCD panels, and the cost of importing production equipment.

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