Supply chain
Digitimes Research: Samsung push toward AMOLED affecting local touch panel makers
Ricky Tu, DIGITIMES Research, Taipei

As Samsung Electronics is expected to continue pushing AMOLED panels into mid-range handsets it will continue to decrease orders for touch panels equipped with LCD panels in 2015, which in turn is expected to affect Korea makers' revenues and profits during the year, according to Digitimes Research.

Samsung began decreasing orders in 2014 due to this trend and because it saw a slowdown with relevant handset and tablet orders. The company is expected to continue decreasing orders in 2015, with an estimated purchase amount expected to fall to less than KRW2 trillion (US$2 billion), down from about KRW3.5 trillion in 2013 and KRW2.2 trillion in 2014.

South Korea makers' total revenues from touch panels purchased from Samsung have already dropped from KRW2.6 trillion in 2013 to KRW1.5 trillion in 2014, and are expected to further decline in 2015, said Digitimes Research.

For LCDs equipped with touch panels, Samsung's main suppliers include Iljin Display, ELK (Electro Luminescence Korea), Melfas, SMAC (Smart Mobile Application Company), Synopex and Taeyang Electronics.

Samsung meanwhile is focused on its Super AMOLED displays that feature on-cell touch AMOLED (OCTA) technology. Samsung is moving further toward bendable and flexible AMOLED technologies, but IIjin Display is actively pursuing flexible touch applications in order to meet new demand from Samsung, which Digitimes Research believes will give the company a competitive advantage over competitors.

© 2019 DIGITIMES Inc. All rights reserved.
Please do not republish, publicly broadcast or publicly transmit content from this website without written permission from DIGITIMES Inc. Please contact us if you have any questions.