Samsung Display is planning to add three more foldable module lines at its factory in Vietnam by next year to expand its foldable panel production capacity, TheElec has learned.
Once the addition is complete, the number of company’s foldable module lines will increase from seven to 10.
This will expand its foldable panel production capacity from the current 1.4 million to 1.5 million units per month to 2 million units per month, sources said.
Samsung Display has started placing orders for the necessary equipment recently.
The suppliers will begin delivering the equipment up to the end of 2022.
Samsung Display’s expansion of its foldable display panel production capacity is aimed at meeting its annual shipment target of 18 million units next year.
If met, this will be double its shipment of 8.1 million units expected this year.
Its current capacity can theoretically reach 18 million units but this doesn’t take into account defects and readjustment work needed on lines depending on customer demand, hence the expansion.
Out of the 18 million units, Samsung Display will be supplying over 14 million units to Samsung Electronics, which is aiming to ship 13 million foldable phones next year.
Display panel companies usually supply more panels than the set maker needs. Samsung Display’s yield rate for its foldable panel is currently around 90%, the sources said.
Equipment used in modules line are made faster than those used for thin-film transistors or organic material deposition, so Samsung Display will be able to be flexible with its factory expansion plan.
Samsung Electronics is expected to ship 7 million foldable smartphones, which will be around 2% to 3% of its total smartphone shipment of mid-200 million units per year.