David Savastano, Editor08.28.13
Organic light emitting diodes (OLED) are receiving a lot more attention in recent years, as advancements in OLED technology are leading to commercial opportunities. Samsung and LG have launched OLED televisions into the market, and while the price point is extremely high – Samsung’s S9C is $8,999 and LG’s 55EA9800 is $14,999 – the quality is considered extraordinary. It is certainly thought that prices will come down as the technology gains acceptance in the marketplace.
OLEDs have also made significant gains in the areas of smart phones (for example, some of the Samsung Galaxy models have OLED displays), digital cameras (Canon and Nokia are among the brands that have OLED screens on some of their cameras) and tablet displays. OLED lighting, on the other hand, has yet to make much of an inroad into the market.
What is the potential for the OLED display market? It depends on who is reporting on it. In its 2013 report, “OLED Displays Market,” Transparency Market Research reportedly forecasted sales of more than $25 billion by 2018. Meanwhile, Markets and Markets released a study, “Global Display Market,” which placed the overall display market at $164 billion, with OLEDs values at $5 billion by 2017, growing at a rate of 30% annually.
Displays are the key area of interest for OLEDs. LEDs are manufactured on crystalline substrates, and are not flexible. OLEDs are produced on plastic, and are thinner, lighter and flexible; the Samsung and LG televisions are curved. They use less power as OLEDs don’t require backlighting, and tend to be brighter. The refresh rate is said to be much faster as well. Because they are produced on plastic, OLEDs are easier to manufacture.
This is where printed electronics comes in. Samsung and its competitors such as Sony are looking for the technology to print OLEDs, most likely through inkjet rather than the more costly vacuum or vapor deposition, which would be a huge cost savings and allow the companies to reduce the prices for consumers.
Aside from the major electronics companies, a number of promising start-ups have entered the OLED field, developing displays and materials. Samsung has been actively working with a number of these manufacturers, either setting up licensing agreements, buying shares of the companies or completely acquiring the companies.
Samsung has working agreements with Novaled AG and Universal Display, two of the most promising OLED material manufacturers.
The August 2013 acquisition of a majority stake in Novaled AG by Samsung affiliate Cheil Industries, a leading electronic materials company in the display industry, and Samsung is particularly noteworthy.
Founded in 2001 through a spin-off of the Dresden University of Technology and the Fraunhofer Institute of Dresden, Novaled AG is a leader in the OLED field. The company, which had 2012 revenues of €26 million, develops organic materials and complementary innovative technologies. These materials are aimed at improving performance, efficiency, stability and lifetime while also reducing the cost of manufacturing.
Cheil Industries signed a binding agreement to acquire a majority stake of approximately 50% in Novaled. Samsung Electronics will acquire approximately %, and the remaining stake of approximately 10% in Novaled is currently held by Samsung Venture Investment, which will maintain its current shareholding. The agreement values Novaled at €260 million.
“Leadership in future display market will be determined by technological capacity,” Jong-Woo Park, Cheil Industries’ CEO, said. “This acquisition is expected to generate significant synergy in new-generation OLED materials R&D and will play a critical role in enhancing Cheil Industries’ market position as a global leader in electronic materials.”
Since 2005, Samsung has worked with Novaled on advanced OLED products, and invested in Novaled in 2011. In 2012, Samsung and Novaled signed a strategic purchase agreement, in which Samsung committed to purchase dopant materials used in the transport layers of its AMOLED display modules from Novaled. Meanwhile, Novaled provided its PIN OLED technology to Samsung for use in the production of Samsung Mobile Display’s (SMD) AMOLED display modules.
Universal Display is a specialist in phosphorescent OLED, or PHOLED, technologies and materials for displays and lighting, and has done work on inkjet printing of these materials. Samsung has partnered with Universal Display for more than a decade, and in 2011, Universal Display and SMD entered into agreements in which Universal Display licensed its technologies and sold its proprietary materials to SMD for use in its OLED display products.
Samsung is also active in other technologies such as quantum dots: it has agreements with Evident Technologies, granting Samsung global access to Evident's patent portfolio for all products related to quantum dot LEDs, and Nanosys, a quantum dot enhancement film manufacturer.
Not all of these partnerships have been successful. In January 2011, Samsung acquired Liquavista BV, an electrowetting display specialist spun out of Phillips Research in 2006, forming the Samsung LCD Netherlands R&D Center. In May 2013, Samsung sold Liquavista to Amazon, which has its eye on developing color displays for its mobile devices.
It remains to be seen if the OLED display market can successfully grow into the large display market, and which materials and processes will ultimately be successful. Samsung’s strong approach to partnerships gives the company a wide palette to choose from in selecting the best possible approach to OLEDs.
OLEDs have also made significant gains in the areas of smart phones (for example, some of the Samsung Galaxy models have OLED displays), digital cameras (Canon and Nokia are among the brands that have OLED screens on some of their cameras) and tablet displays. OLED lighting, on the other hand, has yet to make much of an inroad into the market.
What is the potential for the OLED display market? It depends on who is reporting on it. In its 2013 report, “OLED Displays Market,” Transparency Market Research reportedly forecasted sales of more than $25 billion by 2018. Meanwhile, Markets and Markets released a study, “Global Display Market,” which placed the overall display market at $164 billion, with OLEDs values at $5 billion by 2017, growing at a rate of 30% annually.
Displays are the key area of interest for OLEDs. LEDs are manufactured on crystalline substrates, and are not flexible. OLEDs are produced on plastic, and are thinner, lighter and flexible; the Samsung and LG televisions are curved. They use less power as OLEDs don’t require backlighting, and tend to be brighter. The refresh rate is said to be much faster as well. Because they are produced on plastic, OLEDs are easier to manufacture.
This is where printed electronics comes in. Samsung and its competitors such as Sony are looking for the technology to print OLEDs, most likely through inkjet rather than the more costly vacuum or vapor deposition, which would be a huge cost savings and allow the companies to reduce the prices for consumers.
Aside from the major electronics companies, a number of promising start-ups have entered the OLED field, developing displays and materials. Samsung has been actively working with a number of these manufacturers, either setting up licensing agreements, buying shares of the companies or completely acquiring the companies.
Samsung has working agreements with Novaled AG and Universal Display, two of the most promising OLED material manufacturers.
The August 2013 acquisition of a majority stake in Novaled AG by Samsung affiliate Cheil Industries, a leading electronic materials company in the display industry, and Samsung is particularly noteworthy.
Founded in 2001 through a spin-off of the Dresden University of Technology and the Fraunhofer Institute of Dresden, Novaled AG is a leader in the OLED field. The company, which had 2012 revenues of €26 million, develops organic materials and complementary innovative technologies. These materials are aimed at improving performance, efficiency, stability and lifetime while also reducing the cost of manufacturing.
Cheil Industries signed a binding agreement to acquire a majority stake of approximately 50% in Novaled. Samsung Electronics will acquire approximately %, and the remaining stake of approximately 10% in Novaled is currently held by Samsung Venture Investment, which will maintain its current shareholding. The agreement values Novaled at €260 million.
“Leadership in future display market will be determined by technological capacity,” Jong-Woo Park, Cheil Industries’ CEO, said. “This acquisition is expected to generate significant synergy in new-generation OLED materials R&D and will play a critical role in enhancing Cheil Industries’ market position as a global leader in electronic materials.”
Since 2005, Samsung has worked with Novaled on advanced OLED products, and invested in Novaled in 2011. In 2012, Samsung and Novaled signed a strategic purchase agreement, in which Samsung committed to purchase dopant materials used in the transport layers of its AMOLED display modules from Novaled. Meanwhile, Novaled provided its PIN OLED technology to Samsung for use in the production of Samsung Mobile Display’s (SMD) AMOLED display modules.
Universal Display is a specialist in phosphorescent OLED, or PHOLED, technologies and materials for displays and lighting, and has done work on inkjet printing of these materials. Samsung has partnered with Universal Display for more than a decade, and in 2011, Universal Display and SMD entered into agreements in which Universal Display licensed its technologies and sold its proprietary materials to SMD for use in its OLED display products.
Samsung is also active in other technologies such as quantum dots: it has agreements with Evident Technologies, granting Samsung global access to Evident's patent portfolio for all products related to quantum dot LEDs, and Nanosys, a quantum dot enhancement film manufacturer.
Not all of these partnerships have been successful. In January 2011, Samsung acquired Liquavista BV, an electrowetting display specialist spun out of Phillips Research in 2006, forming the Samsung LCD Netherlands R&D Center. In May 2013, Samsung sold Liquavista to Amazon, which has its eye on developing color displays for its mobile devices.
It remains to be seen if the OLED display market can successfully grow into the large display market, and which materials and processes will ultimately be successful. Samsung’s strong approach to partnerships gives the company a wide palette to choose from in selecting the best possible approach to OLEDs.