Flexible and OLED display latest technology trend

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1 Flexible and OLED display latest technology trend 강민수 / Principal Analyst

2 2 Flexible Display

3 Shipment Unit (Millions of pieces) Shipment Unit (Millions of pieces) Shipment Unit (Millions of pieces) 3 FLEXIBLE DISPLAY SHIPMENT TREND Y214 Y215 Y216 Y214 Y215 Y216 Y214 Y215 Y216 E-Book Mobile Phone Smart Watch AMEPD AMOLED PMOLED φ1.x-inches 1.x-inches 2.x-inches 5.x-inches 6.x-inches 1x.x-inches Source : IHS Report Flexible Display Market Tracker

4 4 Recent Prototypes of flexible displays EDO Flexible 5.6 WQHD BOE Foldable 4.35 WVGA Tianma Bendable 5.5 FHD GVO Rollable 4.6 WVGA CPT Rollable 4.5 QVGA SDC Rollable 5.7 FHD LGD Rollable 18 HD AUO Rollable 5. HD Sharp Wrap-around 3.4 qhd JDI Curved 5.2 FHD Truly 5.2 6x2 (flexible AMOLED) Royole (flexible AMOLED) Futaba x16 (Curved PMOLED) E-ink 32 WQHD (Flexible EPD) Flex Enable 4.7 (Flexible LCD) Source : IHS Report Flexible Display Market Tracker

5 5 KEY TECHNOLOGY 1 : TO REDUCE THICKNESS Window Resin Window Resin TSP (mm) Polarizer Panel Protection Film Cushion (mm) OCA Polarizer Panel (mm) Heat Sink Cushion % Rigid Flexible Flexible/Rigid 88.4% % 7.7% 68.2% % % % Targeting to coat Polarizer % Y214 Y215 Y216 Y217. Y214 Y215 Y216 Y217. Y213 Y214 Y215 Y216 Y217 < Rigid AMOLED > < Flexible AMOLED > < Thickness comparison of flexible & rigid > Source : IHS Report Flexible Display Market Tracker

6 6 KEY TECHNOLOGY 2 : FLEXIBLE TOUCH SENSOR [ Touch Sensor Development History for AMOLED ] Rigid OLED Flexible OLED (a) On-cell TSP (b) Reverse On-cell TSP (c) TSP on plastic film (d) TSP on polarizer (e) Flexible On-Cell Polarizer Cover window OCA / OCR TSP sensor Deco film Encap glass Sealing (frit or resin) Emitting layer Substrate glass TSP sensor on encapsulation glass (Up side) Total 8 layer TSP sensor on encapsulation glass (Down side) Total 8 layer OCA / OCR TSP base film Plastic substrate TSP sensor on additional base film Total 1 layer Polarizer Thin film encapsulation TSP sensor On polarizer Total 8 layer TSP on Thin film encapsulation TSP sensor On Encap Layer Total 8 layer [ Flexible On-Cell Touch Sensor ] Curing Furnace Low Temperature Process a) Varnishing Plastic Resin on Touch Sensor Pattern b) Thermal Curing for making Plastic Resin as a film c) Touch Sensor Pattern by Low tem. Process on Encapsulation of completed flexible OLED Need to be laminated with polarizer & cover lens Source : IHS Report Flexible Display Market Tracker

7 7 KEY TECHNOLOGY 3 : PANEL CUTTING & LIFT OFF Laser Process is important to manufacture with better quality a) Encapsulated panel substrate ( PI substrate on the carrier glass ) b) Laser Cutting ( Ok for any shape such as circular ) c) Laser Lift Off ( Melting the sacrificing layer under PI ) d) Cell Cleaning Ex) Crack f) Fab-out h) Edge Grinding g) Add the sealant f) Cut the two corners or the frit to cut edge of non-active area No need to edge cutting & grinding (which glass display should do) e) Visual Inspection Source : IHS Report Flexible Display Market Tracker

8 8 KEY TECHNOLOGY 4 : Drive IC Bonding Glass PI PI Additional film Was needed to wire DIC. Drive IC can be bonded directly on the PI Substrate. (No film needed) Cannot boning DIC on PI. Issue Solved Drive IC Glass Source : IHS Report Flexible Display Market Tracker Drive IC Drive IC COF Film COP Film Glass Glass Galaxy S7 Galaxy S7 Edge Galaxy Note7 Additional COP Film was used to optimize the repair process.

9 Improvement of FCL 9 KEY TECHNOLOGY 5 : FLEXIBLE COVER LENS Characteristics by folding type Type C type G type S type C+ Type Shape Single In-Foldable Display inside Outside inside In & outside In & outside Application Tablet Smartphone Tablet Smartphone Smartphone # of folding 1 time 1 time 2 time 2 time 1 time Direction 1 way 1 way 1 way 2 way 1 way # of screen 2 screen 2 screen 3 screen 3 screen 3 Screen # of display 1 display 1 display 1 display 1 display 2 display Thickness Thin Thick Medium Thick Medium Difficulty Low High Mid High Low Dual In-Foldable Out-Foldable In and Out Folding Source : IHS Report Flexible Display Market Tracker Source: IHS [ Thickness issue of foldable display ] T T R T Cover Lens OCA / OCR Display Cushioned OCA/OCR Folding a Max Strength Min Strength T=Thickness, R=Radius Max = (2T+R) * 2 (mm) Min = (2a+R) * 2 (mm) Different of Max & Min = 2 * (T-a) * 2 (mm) It should be thin as possible as it can. Flexible Plastic or Glass Unbreakable Plastic Optical Clear Colorless PI 216 IHS Hard Surface Hard Coated Colorless PI Thick Crack Whitening Cost?

10 Shipment Unit (Millions of pieces) Annual Growth (%) Shipment Unit Ratio (%) Shipment Unit Ratio (%) 1 FLEXIBLE DISPLAY MARKET FORECAST % % 3% 5% 8% 11% % 14% 1 9% 27% 33% 9% 9% 15% 17% 1 11% % % % 99% 99% 1 99% 99% 99% 99% 99% 96% % 78% 82% 75% 84% 72% 68% 65% 73% 66% % 21.3% % 11.8% % % 1% 5% 9% 8% 8% 7% 7% Units Annual Growth (%) AMEPD AMOLED PMOLED TFT LCD Bendable Curved Flat Foldable Rollable Source : IHS Report Flexible Display Market Tracker

11 AMOLED Supply Capacity Area (Millions of square meters) Flexible AMOLED Supply Capacity Area Share (%) Flexible AMOLED Supply Capacity Area Share (%) 11 FLEXIBLE AMOLED CAPACITY FORECAST % 3% 8% % % % % 86% % 82% 94% 97% 98% 4 27% % % Flexible Rigid Share of Flexible (%) Korea China Japan Singapore Taiwan 24% 1 18% 6% 3% 2% Half G4 G4 Quarter G6 Half G6 Source : IHS Report Flexible Display Market Tracker

12 Shipment Weight (Ton) 12 POLYIMIDE SUBSTRATE MARKET FORECAST 1,2 2 1,3 18 1, 8 145% % % % % 21% 26% 22% Y214 Y215 Y216 Y217 Y218 Y219 Y22 Y221 Y222 Y Source : IHS Report Flexible Display Market Tracker

13 13 Small & Medium AMOLED Display

14 14 Small & Medium AMOLED Issue 1 APPLE S DEMAND Brand Dual Edge Curved Various type of Curved Screen with flexible AMOLED Repeating Simple Flat type Screen with LTPS LCD Curved? Curve Screen would not be innovative or differentiated for Apple. Source : IHS Report Flexible Display Market Tracker

15 Pixel Pitch (μm) Number of Repeating (times) 15 Small & Medium AMOLED Issue 2 Fine Metal Mask HD Full HD Quad HD Ultra HD 8k x 4k 4.7 inch 5.1 inch 5.5 inch 5.7 inch HD Full HD Quad HD Ultra HD Gen4.5 Gen5.5 Gen6 Gen8 Improvement of FMM [ Design & Post Process of completing fine metal mask ] Thermally Stable Invar Alloy Light Weight Split Mask Narrow Pitch Dual Side Etching Thinner Structure Electro-forming, Fine Hybrid Mask Source : IHS Report OLED Technology Market Tracker Pre-distort Stretching to fix Merging Slit Mask

16 16 Recent Technologies of Manufacturing FMM [ Electro-forming Mask (Plating Process) ] SUS Substrate PR Patterning PR Etching ITO (as a release layer) SUS plate Photo Resist Developing Reverse Mask Pattern Specific Condition of Plating Solution ph of NiCl 2, FeCl 3, Current density: 2-1 ma/cm 2, Temperature C Anode Cathode Plating Ni++ Fe+++ Plating solution Invar (Ni+Fe) Releasing Over 2 μm Pitch 1-2 μm Slit 1-2 μm 65 4 mm FMM with electro-forming [ Fine Hybrid Mask (Plating Process + Polyimide Laminating) ] PI Hybrid Mask Slit Pitch Mask Frame Spot Welding PI Film Invar Source : IHS Report OLED Technology Market Tracker

17 Shipments (thousands) Shipments (thousands) Shipment share 17 AMOLED FINE METAL MASK MARKET FORECAST % % 28% % 95% 95% 94% 87% 73% Shipment Unit Annual Growth (%) Gen1. Gen3.25 Gen4.5 Gen5.5 Gen6. AUO BOE CSOT CPT EDO Foxconn JDI LGD Royole SDC Sharp Sony Tianma Truly GVO Source : IHS Report OLED Technology Market Tracker

18 AMOLED Supply Capacity (Millions of square meters) Rigid AMOLED Supply Capacity (~G6, Millions of square meters) Rigid AMOLED Supply Capacity (~G6, Millions of square meters) 18 Small & Medium AMOLED Issue 3 RIGID CAPACITY % % 57% % % % % Flexible Rigid (~G6) Rigid (G8~) Share of Flexible (%) 25% 3 19% 17% % 1 1 6% 5% 2% Korea China Japan Singapore Taiwan Growth (%) G G Quarter G4 Half G4 G4 Quarter G5.5 Quarter G6 Half G6 Source : IHS Report OLED Technology Market Tracker

19 19 Impact of Small & Medium Rigid AMOLED Capacity Advantages for AMOLED Frontiers > Huge Capacity (but limited) > Various Products (focusing high-end) > Less Depreciation (No additional Capa) > Less Cost (Yield improving) Followers > Supply for candidates customers > Sharing catch up (if capacity exists) > Follow up rigid AMOLED technology > Sourcing better material & source Source : IHS Report OLED Display Market Tracker

20 2 Large sized AMOLED Display

21 ASP (US$) ASP (US$) ASP (US$) ASP (US$) 21 Large sized AMOLED Issues 1 Panel Price [ Price Trend (214 Q1~216 Q4) ] [ Price Forecast (217 ~ 22) ] " 384 x 216 AMOLED 55" 384 x 216 TFT LCD 55" 384 x 216 QD LCD $1,. $8. $6. 341% 33% 286% 279% 273% 267% 264% $4. 5 $2. 1 $ " 384 x 216 TFT-LCD 55" 384 x 216 AMOLED ASP Ratio of OLED (%) 3 65" 384 x 216 AMOLED $1, " 384 x 216 TFT LCD 65" 384 x 216 QD LCD $8. 262% 3 2 $6. 235% 227% 225% 223% 221% 223% 15 2 $ $2. 1 $ " 384 x 216 TFT-LCD 65" 384 x 216 AMOLED Ratio of OLED (%) Source : IHS Report OLED Technology Market Tracker

22 Area (thousands m²) Glut (%) Yield Rate (%) 22 Large sized AMOLED Issues 2 Low supply efficiency 1 91% % 85% 69% 73% 84% 88% 72% 62% 76% 64% 49% 48% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Increasing 55" Oxide WOLED Full HD Full Cut 55" Oxide WOLED Full HD Half 8 55" Oxide WOLED Ultra HD Full Cut 55" Oxide WOLED Ultra HD Half 8 65" Oxide WOLED Ultra HD Full Cut 77" Oxide WOLED Ultra HD Full Cut 52% 38% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q Glass cutting efficiency by generation & panel size Size Gen 8 Half Cut 22x 125 mm 6 (91) 2 (42%) Gen 8 Full Cut 22x 25 mm 6 (91%) 3 (64%) Gen 9.7 Full Cut 25x 295 mm 8 (9) 6 (95%) Gen 1.5 Full Cut 294x 337 mm 8 (67%) 8 (94%) OLED TV Demand OLED TV Design Capacity Glut 77 2 (59%) 2 (59%) 3 (66%) 3 (49%) Source : IHS Report OLED Technology Market Tracker

23 23 Large sized AMOLED Issues 3 Top Emission < Bottom-Emission > < Top-Emission > WOLED Anode R Metal Foil Thin Film Encapsulation Cathode Color Filter G B Blank Oxide TFT Glass Substrate Circular Polarizer R G B W Circular Polarizer R G B Blank Glass Encapsulation Transparent Cathode WOLED Anode R G B W Glass Substrate Reflection Film Gen8 Bottom Emission Process (Pilot from 213) Glass Substrate Color Filter on Array Oxide TFT White OLED Cathode Thin Film Encapsulation Metal Foil Polarizer Gen8 Top Emission Process (Pilot from 217) Glass Substrate Oxide TFT White OLED Transparent Cathode Color Filter on Glass Glass Encapsulation Reflection Film Polarizer Source : IHS Report OLED Technology Market Tracker

24 24 Large sized AMOLED Issues 4 Ink Jet Printing < Bottom-Emission > < Top-Emission > Glass & Thin Film Encapsulation Cathode R G B Anode R G B Circular Polarizer Glass & Thin Film Encapsulation Glass Substrate Circular Polarizer R G B Oxide TFT R Transparent Cathode G B Anode Glass Substrate Reflection Film Gen8 Hybrid Blue Common Layer Inkjet/Evaporation AMOLED (Pilot from 218) Ink Jet Dry + Anneal HIL Ink Jet Dry + Anneal HTL Ink Jet Dry + Anneal Red/Green Evaporation HCL Evaporation Blue Evaporation ETL Evaporation Cathode Cathode ETL EML (B) HCL EML (R) EML (G) HTL (R/G) HIL Anode HTL (B) Gen8 Full Inkjet Printed AMOLED (Pilot from 221) Ink Jet Dry + Anneal HIL Ink Jet Dry + Anneal HTL Ink Jet Dry + Anneal Red/Green/Blue Evaporation ETL Evaporation Cathode Cathode ETL EML (R) EML (G) EML (B) HTL HIL Anode Low material usage High Resolution Rapid Process Speed Short Life Time Low Efficiency Source : IHS Report OLED Technology Market Tracker

25 Large sized AMOLED Supply Capacity (Thousands of square meters) Large sized AMOLED Supply Capacity (Thousands of square meters) Large sized AMOLED Supply Capacity (Thousands of square meters) 25 OLED TV Panel Capacity Forecast % % % 6. 34% Korea China Japan Growth (%) Sixth G8 Half G8 G8 G1.5 FMM OMM Ink Jet Source : IHS Report OLED Technology Market Tracker

26 Shipment Unit Market Share (%) Shipment Area Market Share (%) Shipment Unit (Millions of Pieces) Shipment Area (Millions of square meters) 26 OLED TV Panel Market Forecast % 75% 67% 68% Gen 1.5 Capa Up % 79% 7 69% Gen 1.5 Capa Up % 31% 27% 21% % 31% 27% 21% " 192 x 18 55" 384 x " 384 x " 384 x 216 Growth (%) " 192 x 18 55" 384 x " 384 x " 384 x 216 Growth (%) 25% % 15% 12.9% 1.3% 1 7.5% 4.7% % 2.2% 2.9% 3.6% 4.4% 5% %.6%.3% OLED M/S (all TV size) OLED M/S (more than 55") 25% 19.5% % 13.9% 15% 11.1% 1 8.1% 7.7% 6.6% 5.1% 5.3% 4.2% 5% 3.2% 2.9% % 1.1%.7% OLED M/S (all TV size) OLED M/S (more than 55") Source : IHS Report OLED Technology Market Tracker

27 27 Summary

28 28 AMOLED PANEL MAKERS STATUS SUMMARY KOREA JAPAN CHINA TAIWAN SDC LGD Sony JDI JOLED SHARP BOE TIANMA GVO EDO Royole CSOT CPT AUO INX Gen 3.25 X X MP X X X X X X X X X X Pilot - Gen 4 MP MP X - X - X X Pilot MP - - X MP - Gen 5.5 MP X X X X X Pilot Pilot Pilot X Ready X X X - Gen 6 MP FI X Ready X Ready Ready Ready Ready Ready - Ready Ready - - Gen 8 - MP X X Ready X Pilot X X X X Ready - X X Gen Ready X X X X X X X X X X X X X Rigid MP MP MP - Ready X Pilot Pilot Pilot MP - - Ready MP - FleXible MP MP X Ready Ready Ready Ready Ready Ready Ready Ready Ready Ready - - Curved MP Ready X Ready - Ready Ready Ready Ready Ready Ready Ready Foldable - - X Rollable - - X FMM MP MP MP Ready - Ready Pilot Pilot Pilot MP Ready Ready Ready MP - OMM - MP X X X X X Ink-jet - Ready X - Ready LTPS MP MP MP Ready X Ready Pilot Pilot Pilot MP Ready Ready - MP - OXIDE - MP - X Ready - Pilot - X X X Ready Ready - - Top Emission Bottom Emission MP MP MP Ready Ready Ready Pilot Pilot Pilot MP Ready Ready Ready MP - - MP X X X - Pilot X X X X Source : IHS Report OLED Technology Market Tracker MP : Mass Producing, Pilot : Pilot Producing Ready : Ready to MP, - : R&D, X : Not considering

29 29 Thank you!

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