Samsung Display has already monopolized the small OLED panel market and as rivals step up their efforts to compete against it, the company is looking into making a fresh investment of $2 billion to increase production of organic light-emitting diode panels for smartphones. Korean news outlet Chosun Biz reports that Samsung Display is going to make this investment in Vietnam.
According to the report, Samsung is finalizing deal conditions with the provincial government of Tinh Bac Ninh in northern Vietnam. The company is expected to formally announce the deal in the first quarter of 2017. Samsung Display has already made considerable investments in the country and the latest funding will bring the figure up to $6 billion. Samsung Electronics also operates two production facilities in the country where it manufactures almost 50 percent of all handsets sold globally. Key suppliers like Samsung Display have also expanded their production capacity in the area.
Samsung Display will be looking to ramp up production as soon as possible given that it's likely going to be the only supplier of OLED displays for the upcoming iPhone. Apple is expected to source 100 million OLED panels annually from the second quarter of this year so the additional production capacity will certainly be put to good use.
