As Chinese display companies such as BOE, CSOT, and Visionox have all invested in organic light-emitting diode (OLED) technology, Korean display equipment companies are increasingly anticipating profits.

According to Korean industry sources on the 15th, AP System has secured an order from Visionox for excimer laser annealing (ELA) equipment. This equipment converts OLED glass substrates from amorphous silicon to polycrystalline silicon to increase electron transfer speed. AP System plans to deliver the equipment to Visionox by October of next year. The price has not been disclosed due to a confidentiality agreement.

AP System's equipment will be installed in the "V5" production line of Visionox's 8.6-generation OLED factory currently under construction in Hefei. Visionox has decided to invest 55 billion RMB in the Hefei V5 production line.

China Star Optoelectronics has also begun investing in an 8.6-generation OLED fab. The company recently announced plans to build an OLED fab in Guangzhou, utilizing 8.6-generation glass substrates and producing 22,500 panels per month. The company has committed to investing 29.5 billion RMB in this "T8" production line.

BOE is also constructing its 8.6-generation OLED fab, "B16," in Chengdu, Sichuan Province. The investment is reportedly 63 billion RMB, and the monthly production capacity, based on 8.6-generation substrates, will reach 32,000 panels. As Chinese display companies flock to OLED investment, Korean industry analysts believe that Korean equipment companies, which have accumulated technological expertise through collaborations with Samsung Display and LG Display, will continue to sign supply contracts.

Shinsung E&G is expected to benefit from cleanroom equipment for OLED production. Shinsung E&G holds the world's top market share in fan filter units (FFU), industrial air purifiers used in cleanrooms.

SFA is expected to collaborate on process automation equipment for conveying, sorting, and storing OLED glass substrates in cleanrooms. SFA offers a comprehensive product line of OLED process automation equipment, including stockers (stackers), OHCVs (overhead crane automated handling systems), and OHSs (high-bay storage systems).

DMS is likely to be contracted to supply cleaning equipment for removing impurities from OLED glass substrates, as well as wet process equipment such as developing equipment and stripping equipment. DMS, which operates a factory in Weihai, China, is the only Korean equipment company able to provide close support to Chinese companies.

DMS R&D equipment (Image source: DMS)

Philoptics is strong in laser equipment, including laser cutting equipment and laser lift-off (LLO) equipment. Nanotech is expected to benefit from coating equipment used to apply photosensitive liquid to OLED glass substrates. Invenia is likely to supply dry etching equipment to OLED glass substrates, which removes unnecessary areas.

A South Korean industry insider said, "After BOE became the first Chinese company to start 8.6-generation OLED investment, China Star Optoelectronics, Visionox and others followed suit." "As major Chinese display companies restart OLED investment, South Korean equipment companies are expected to achieve improved performance through equipment orders from the fourth quarter of this year to next year."