DSCC Reveals OLED Equipment Supplier Rankings and Share for 56 Different Segments and >90 Suppliers
In our Quarterly OLED Supply/Demand and Equipment Spending Report, we provide a deep dive into all OLED fabs revealing not only fab schedules, yields, yielded vs. unyielded capacity and supply/demand, but also equipment spending trends for 64 different segments. For 56 of those segments, we provide market share. In this article, I will reveal some of the equipment spending takeaways.
First, in 2019, the top equipment suppliers to OLED fabs were Canon with a 14.7% share, AMAT and LG PRI at 5.6%, Invenia at 4.3%, Panasonic at 3.9% followed by YAS, TEL, AVACO, Nikon and AP Systems. Companies in LGD’s supply chain outperformed. In 2020, the top suppliers are expected to be Canon, AMAT, Kateeva, AP Systems, Nikon, TEL, Iruja, LG PRI, SCREEN and ULVAC. Companies focused on mobile OLEDs will outperform while many companies in LGD’s supply chain will lose ground. Due to the 148% growth in OLED spending in 2020, most OLED equipment suppliers are poised for rapid growth. Only AVACO, LG PRI and YAS are expected to experience declines as LGD’s capex drops after a robust 2019. With >90 companies with share in the report, 65% coverage was provided for 2019 and we have already captured 56% of the 2020 market.
2016-2020 OLED Equipment Supplier Share and Growth
If we looked just at TFT backplanes in OLED fabs, Canon has led from 2017-2019 and is expected to lead in 2020 as well due to their high litho share. AMAT is expected to rise from #3 to #2 in 2020 as it gains share as LGD’s oxide suppliers lose ground. Nikon is expected to rise from #6 to #3 in 2020 as it wins the EDO litho business and shares the Visionox V3 business with Canon. AP Systems is expected to rise from #7 to #4 in a stronger year for mobile OLEDs. TEL is expected to maintain the #5 position and gain share also a result of a stronger year for mobile OLEDs. Iruja is expected to rebound in 2020, rising from #14 to #6 as mobile OLED business strengthens. Losing ground are AVACO and Invenia which were in the top 4 in 2019.
2016-2020 OLED Backplane Share by Supplier
If we look just at OLED frontplane spending, we also see Canon on top due to its strong position in OLED evaporation. Its Tokki acquisition is really working out for them. We expect them to enjoy nearly 500% growth in 2020 as they expand beyond mobile evaporation tools to also supplying evaporation tools for QD-OLEDs to SDC. Kateeva is also a large beneficiary of SDC’s QD-OLED TV plans as it is expected to win the QDCC business as well as their organic encapsulation business which should also be lucrative for them given the jump in substrate size. Given all the other organic encapsulation business and their high share, they may rise all the way to #2 in OLED frontplane spending in 2020, ahead of AMAT. Similarly, AMAT should also benefit from SDC’s encapsulation needs as well as all the other mobile fab business next year. We see ULVAC jumping to #4 on a FMM VTE win at EDO. As indicated, the OLED frontplane business is predicted to outpace the OLED backplane business with 206% to 113% growth enabling frontplane leaders to gain overall share.
2016-2020 OLED Frontplane Share by Supplier
For more information on this report, please contact Gerry McGinley at Gerry@displaysupplychain.com or your local DSCC representative.