Samsung Mobile Display To Invest US$2.1 Billion For OLED Plant

Samsung Mobile Display (SMD), a joint venture between Samsung Electronics and Samsung SDI, stated it will invest KRW2.5 trillion, about US$2.1 billion, toward building the world’s largest OLED production line geared for smartphone display applications. The target capacity of the OLED fab is 30 million 3-inch AMOLED displays per month. SMD expects by July 2011 that it will begin volume production. SMD is currently the largest manufacturer of AMOLEDs for smartphone applications and this announcement will vastly increase its lead over others.

The company’s AMOLED displays incorporate PenTile Matrix technology (read Nexus One PenTile Matrix OLED Display and Samsung OLED PenTile Matrix: Why is the Red Sub-Pixel so Big? for more info) that makes use of a unique sub-pixel structure to reduce power consumption and increase lifetimes of the OLED phosphors. I would wager that SMD will be focusing on volume producing, and lowering production costs of, its Super AMOLED (read Samsung Galaxy S with Super AMOLED for more info) and future enhanced versions.

This is the second major investment by SMD toward an OLED manufacturing plant: the first was $403 million in 2005 toward a facility focusing on five-inch or smaller OLED displays in Cheonan, located south of Seoul, in the Chungcheongnam Province, not “in the southern part of Seoul” as reported by The Wall Street Journal.