LG Display will ramp up its M2 OLED-TV panel line next month, according to a report in South Korea’s ET News quoted in English by Amy Fan and Alex Wolfgram in Digitimes.
As prevously reported, the new $640-million line is expected to have a monthly capacity of 34,000 units, quadrupling the company’s current capacity. LGD will be producing 55-, 65- and 77-inch panels, at significantly higher yield — and therefore at lower cost — than has been possible in the past.
Digitimes Research reports that production concerns have caused LG Electronics to reduce its OLED-TV sales target for 2015 to 800,000 sets from 5 million. Digitimes Research expects OLED-TV prices to remain about double those Ultra-HD LCD-TVs through 2016, reported Fan and Wolfgram.
At Display Week this past June, Changho Oh, Senior VP for LG Display’s OLED TV Development Division 1, told me that the company’s Fab 1 was producing panels for LG’s 55-inch OLED TV at a 70–80% yield. That was a remarkable improvement from what was widely estimated to be a 10% yield in the middle of 2013 and 50% early this year. Manufacturing yields for 55-, 65-, and 77-inch panels will vary by size, Oh said. New-for-2014 OLED-TV models will all have curved screens.
The striking improvement in yield has been due to improvements in IGZO stability.
Oh told me very openly that the oxide-TFT process has very narrow process margins and obtaining good yields was difficult in the development stage. It is necessary, he said, to understand all of the characteristics and to be able to control them precisely. The situation with the OLED frontplane, he said, “…is not so difficult because we use WOLED,” referring to the white OLED process LG uses for its TV panels. He confirmed that most of the yield issues were related to the oxide-TFT
Farther down the line, LG might consider using a different oxide. For now, the company has made its investment and is enjoying the fruits of its labors.
Oh agreed that the blue OLED lifetime remains on the short side. LGD specifies that the D6500 white point cannot vary by more than 500°C over 20,000 hours, which represents about 7 years of viewing for the typical consumer. Oh said this is a tough spec, but LGD is meeting it.
Oh also said speculations that the oxygen/moisture barrier is a problem for TV-sized panels are not correct. LG uses a 0.1-mm metal sheet and tests the seal by bending the panel 20,000 times without difficulty.
Although LGD has improved manufacturing yields dramatically, it is widely believed that solution processing — applying the OLED materials in liquid form with one of a variety of printing-like processes — is the way to make OLED manufacturing costs competitive with those of LCDs. Oh onfirmed that LG has a large research program in this area, and noted that equipment and development are expensive. LG’s goal is to have solution-based OLED panels available in 2018.
With Samsung having temporarily retreated to the sidelines as far as TV-sized OLED panels are concerned, development is in LGD’s hands. And LGD is committed to making the most of its lead. The company is making its OLED panels available to Chinese set-makers, so look for companies such as TCL and Hisense to lead the way with relatively low-cost OLED-TVs next year.
Posted by Ken Werner, November 17, 2014 4:01 PM
About Ken WernerKenneth I. Werner is the founder and Principal of Nutmeg Consultants, which specializes in the display industry, display technology, display manufacturing, and display applications. He serves as Marketing Consultant for Tannas Electronic Displays (Orange, California) and Senior Analyst for Insight Media. He is a founding co-editor of and regular contributor to Display Daily, and is a regular contributor to HDTVexpert.com and HDTV Magazine. He was the Editor of Information Display Magazine from 1987 to 2005.