According to industry reports on June 22, Samsung Electronics Co., Ltd. Display has secured production certification for the organic light-emitting diode (OLED) modules intended for Apple's foldable smartphone. Following this approval, Samsung Display has initiated the operation of select equipment at its Vietnam backend production lines to begin mass production of the initial order batch. The first delivery for this year is slated to be 3 million units. Consequently, barring any issues with the supply of other components, Apple's foldable phone could potentially launch as early as this autumn.
The module production certification is a critical step before supplying panels to the complete device manufacturer. This process confirms the assembled state of the finished product, its quality, and the stability of mass production. It is understood that Apple's certification standard requires a yield rate exceeding 70%, and the final yield for this project surpassed 80%, leading to a smooth approval.
Samsung Display is the exclusive supplier of OLED screens for Apple's foldable phone, with both parties having signed a three-year exclusive supply agreement for foldable OLED panels. For the duration of this contract, Apple is prohibited from procuring foldable OLED panels from other manufacturers. The size of the initial delivery order this year is approximately 3 million units.
The backend processing for the OLED screens of Apple's foldable phone is being handled by Samsung Display's factory in Vietnam. Samsung Display primarily locates the backend processes for flexible OLEDs, including foldable screens, in Vietnam, while its backend production lines for rigid OLEDs are situated at its Chinese production bases. Out of the total 80 backend production lines currently in Vietnam, around 50 are operational. To meet the demand for the first delivery of Apple's foldable OLEDs this year, a portion of these lines is being prioritized for production.
Backend production lines are primarily responsible for the panel module assembly process, producing finished screens that can be directly supplied to complete device manufacturers. After the front-end processes complete the fabrication of the thin-film transistor (TFT), OLED emission layer, and encapsulation layer, the backend process involves attaching the drive circuit, flexible printed circuit board, and protective components, followed by final inspection and pre-shipment re-inspection procedures.
The standards for panels and device components in foldable phones are significantly higher than those for conventional flat smartphones. As the screen needs to be repeatedly folded, factors such as the durability of the folding area, creasing, thickness, and module assembly precision are of paramount importance.
The OLED for Apple's foldable phone will incorporate CoE (Color filter on Encapsulation) technology. This technology eliminates the polarizer by directly fabricating the color filter on the encapsulation layer. It is reported that this OLED utilizes Samsung Display's next-generation organic material set, M16, which is also the latest material package dedicated to OLED screens for Samsung's flagship phones. This represents a comprehensive upgrade over the previous generation in terms of brightness, color performance, lifespan, and power efficiency.
Industry forecasts widely predict that Apple's foldable phone will be unveiled in September, with the consensus being that there is a high probability Apple will launch its first foldable product this year. However, the mass production stability of certain device components, such as the hinge, could be a variable affecting the final launch timeline.
The hinge is the core component enabling the opening and closing of the screen in a foldable phone, directly impacting crease effects, the tactile feel of opening and closing, and product durability. Apple's first foldable device is expected to use a 3D-printed hinge module. Currently, this assembled hinge module reportedly has an issue with abnormal noise. Industry estimates suggest this problem could potentially delay the mass production cycle by approximately half a month to a month.
A relevant industry insider commented, "It is understood that the mass production stability of the hinge module for Apple's first foldable phone has encountered a bottleneck. There are no supply issues on Samsung Display's screen side. The final launch date will depend on the preparation progress of Apple's device components, particularly the hinge."
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