Display panel inspection equipment maker Dong A Eltek is aiming to supply more OLED-related kits to Chinese display panel maker Visionox.
Last month, the South Korean company singed a 20.7 billion won contract with the Chinese company for demura systems, people familiar with the matter told TheElec.
Visionox was currently building multiple sixth-generation OLED production lines __ out of them, six lines will use Dong A Eltek’s demura systems.
Demura systems are used to inspect the uniformity of OLED screens. Blurred or nonuniform parts of the screen are called mura __ demura is the process of removing them. The term mura was started in Japan, which started development of liquid crystal displays (LCD).
Organic material are stacked on the thin film transistors (TFT) back plane, then encapsulated.
Expensive deposition equipment are used to deposit the organic materials and the process of placing them in the same thickness with same electric characteristics is a difficult process. The materials are smaller than 1 micrometers, making it difficult to inspect all of them during the production process.
Therefore inspection is done after the process. Demura systems measure the brightness and contrast ratio when the display panel is activated. It then adjusts any imbalances to make the resolution uniform.
Dong A Eltek began securing sales from demura systems two years ago __ they still account for little out of its total sales.
But Chinese display panel companies are expanding their OLED production capacities __ the South Korean company is aiming to ship more demura systems to companies there, including Visionox, from 2021 to 2022.
Dong A Eltek has supplied the systems to LG Display as well as Huawei and Foxconn in the past. The systems are used by display panel makers when they ship their goods, while set makers use them when inspecting panels that arrived.
Dong A Eltek has recently formed a consortium with subsidiary Sunic System in its bid to acquire power solution company Woojin M&E. Woojin recently gave the preferred bidder status to another company but Dong A Eltek believes it sill has a chance to acquire the firm. Sunic produces OLED deposition equipment.
Dong A Eltek posted 4.5 billion won in operating profits and 53.1 billion won in sales in the first half of 2020, a drop of 58.6% and 54.7%, respectively, year over year.
For the full year of 2019, the company posted operating profits of 19.8 billion and sales of 202.9 billion won, a drop of 20.6% and 19.9%, respectively, from 2018.