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© TrendForce Analysis | January 06, 2022

Mobile phone AMOLED panels to reach 46% market penetration in 2022

Benefiting from expanded introduction of AMOLED mobile phone models by Apple, Samsung and Chinese brands, the market penetration rate of AMOLED panels for mobile phones in 2021 was 42%, according to TrendForce's investigations.

In 2022, continuous investment undertaken by numerous panel factories to expand AMOLED production lines will drive AMOLED panel penetration rate to an estimated 46%. However, TrendForce further asserts that the continued tight supply of AMOLED DDI and the willingness of mobile phone brands to expand the use of AMOLED panels will be the keys influencing AMOLED market penetration rate next year. Continued tightness in AMOLED DDI supply for mobile phones The AMOLED DDI process requires dedicated medium voltage 8V processes at the 40nm and 28nm nodes. However, the supply of dedicated process capacity in 2021 is limited. In addition, Samsung’s Austin, Texas fab was shut down due to a snowstorm in early 2021, resulting in serious shortages of AMOLED DDI. New capacity in 2022 includes UMC at the 28nm node and SMIC at the 40nm node. However, since capacity and expanded capacity still cannot effectively meet the various brand’s demand for AMOLED DDI, Samsung’s fab will continue to reduce OLED DDIC production scale in the future. Stocking issues are expected to plague AMOLED DDI continuing into 2022. TrendForce states, UMC’s primary expansion plan for 28nm AMOLED DDI will be completed by the end of 2023, so AMOLED DDI supply tightness is expected to be alleviated in 2023. In addition, other foundries have plans to develop dedicated AMOLED DDI processes but, due to a belated development schedule, these plans will not be able to address the AMOLED DDI shortage in 2022. Facing limitations on dedicated AMOLED DDI production capacity, traditional front-line DDI design houses are actively booking the majority of production capacity, while other DDI design houses are also competing for limited production capacity in order to enter the AMOLED panel factory supply chain. Mobile phone brands expand their willingness to adopt AMOLED panels Facing the gradual maturity of AMOLED panel technology and the continuous improvement of production yields, AMOLED market penetration rate will increase from 42% in 2021 to 46% in 2022. This will reduce the market share of LTPS panels in the mid-tier market and drive panel makers to transfer LTPS production capacity to medium size applications. However, mobile phone brands face the risk of AMOLED DDI continuing to being out of stock in 2022. In addition to the high price of AMOLED panels and the steady increase in the pricing of other semiconductor components, in order for mobile phone brands to maintain profitability and achieve annual shipment goals, TrendForce expects that a small number of AMOLED products may switch over to LCD panels to pad shipments in the mid-to-low-end mobile phone market, allowing LTPS panel makers to gain a bit of breathing room in the mid-end market.
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January 20 2022 3:01 pm V20.1.11-1