BOE’s influence on the OLED market (smartphone basis) is to continue rising, backed by both ongoing client diversification from Chinese companies to global players and improvement in the firm’s production capacity. We expect BOE’s shipment of OLED panels to increase by 50% this year.
BOE’s OLED business competitiveness is strengthening
By shipment, BOE’s share of the global OLED market for smartphones has been climbing from 1% in 2018 → 4% in 2019 → 8% in 2020 → 6% as of May 2021. We attribute BOE’s strengthening market position to increased OLED production capacity and the addition of customers.
Currently, BOE is operating two Gen-6 OLED facilities (B7 and B11) with an estimated combined production capacity of 90K/month. In addition, investment in an additional Gen-6 OLED facility (B12) is now underway. We expect B12 to boast production capacity of 45K/month, with true mass production kicking off after 2Q22. Of note, the B12 facility is to utilize LTPO technology for the reduction of OLED panels’ power consumption. Orders placed and received for IGZO sputtering equipment, a key component of the LTPO production process, can be found at chinabidding.com.
BOE’s customer diversification efforts are readily apparent. Alongside its strengthening position with Chinese clients, the firm is also boosting its supply of OLED panels to global customers (total customers: 2 in 2019 → 5 in 2020). In 1Q21, BOE secured Apple as a client through panel supply for the iPhone 12 (6.06-inch). Moving forward, BOE is to maintain a focus on expanding its overseas client number and beefing up its global market share. We expect the company’s OLED panel shipments to rise from 17mn units in 2019 → 38.7mn units in 2020 → 57.9mn units in 2021.
BOE’s OLED business for Apple is positive
For the time being, BOE’s panel supply to Apple is to center on older iPhone models (ie, 2021 supply is to be for the 2020 iPhone 12, with shipments estimated at 11.12mn units). We expect BOE’s efforts towards both supply for new iPhone models and market share growth within the current panel supply chain (including Samsung Display, LG Display, etc) to continue moving ahead. Business Korea