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QD-OLED & OLED panel production costs expected to drop significantly in 2023 & beyond

25 May 2023 | Rasmus Larsen |

The production cost of a 65-inch QD-OLED panel is expected to fall by 30% in 2023 compared to 2022, and WOLED costs are also expected to drop significantly in the coming years.

2022 was a rough year for display makers as low demand led to low factory utilization, meaning that costs were spread over fewer panels. In Q3 2022, for example, LG's OLED TV panel factory in South Korea ran below 50% of its full production capacity.

As a result, LG Display's production costs of WOLED TV panels actually increased notably in 2022, according to market research firm Display Supply Chain Consultants' (DSCC).

WOLED gets back on track

WOLED production costs are expected to fall again in 2023 as demand bounces back, and continue to fall every year through 2026, according to DSCC's forecast in its latest report.

WOLED costs

Production cost forecast for 55" WOLED panel produced by LG Display in China. Graph: DSCC

65" QD-OLED costs down 30%

Similarly, production costs of QD-OLED TV panels are expected to drop significantly in 2023 due to both improved yield and factory utilization. - "... by our estimates Samsung greatly improved QD-OLED yield throughout the year in 2022, the average yield for the year for 65” QD-OLED panels was only 68% in 2022. We expect that to improve to 84% in 2023 and 85% in 2024, and the big jump in yield in 2023 allows for a substantial improvement in total cost per unit, as shown on the next chart here. In addition to the yield improvement, the average fab utilization of SDC’s QD-OLED lines improves from 77% to 89%," wrote Bob O'Brien, Co-Founder of DSCC. - "The combination of these two factors, plus modest reductions in some component costs, allows for a 30% reduction in the 65” QD-OLED panel total cost in 2023 compared with 2022." Reduced production costs should in the longer run translate into lower prices on QD-OLED and OLED TVs not just from LG and Samsung's consumer division but also other TV makers.

QD-OLED costs

Production cost forecast for 65" QD-OLED panel produced by Samsung Display in Korea. Graph: DSCC

- Source: DSCC

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