Analysts IHS, Markit warned of an impending oversupply AMOLED

Analysts at IHS, Markit has calculated how much in the coming years plans to build factories producing flexible AMOLED panel.

According to their estimates, in China, Japan and South Korea will put into operation the power equivalent to 46 factories with a capacity of 30,000 substrates per month. This will lead to increased output of the panels compared to the current level of 13 times.

As a result, the production of AMOLED panels will exceed the demand. Analysts believe that in 2020, when the AMOLED screens can be found in four of the ten new smartphones, the panels offer exceeds demand by 45%.

While more expensive LCD panels, AMOLED panels will mainly be used in high end smartphones. According to analysts, the panels on rigid substrates will be 40% more expensive, on a flexible 100% more expensive than LCD panels of the same size and resolution. On the other hand, a rapid increase in the volume of production will be accompanied by cost reduction, increase in yield rate of products and improve the quality of the panels.

According to analysts, to increase the sales of AMOLED panels will allow the extension of its scope to tablets, laptops and devices with new form factors that will become possible thanks to the foldable displays.

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