Samsung Display is resuming construction of its new factory in Asan, South Chungcheong Province, after a five-year halt, aiming to strengthen its leadership in the small and medium-sized organic light-emitting diode (OLED) market. The company plans to proactively respond to the growing demand for OLEDs in foldable phones and various IT devices such as laptops and tablets.
According to industry sources on August 18, Samsung Display held an investment review committee meeting on August 7, where it approved the resumption of structural work on the A7 plant in Asan. The company will begin the construction bidding process this month, with plans to start building in early 2027 and complete the facility by early 2028. The site has been idle since construction was temporarily halted in 2021.
The surge in demand for premium displays has driven this investment resumption. Currently, Samsung Display supplies small and medium-sized OLEDs for Samsung Electronics' Galaxy Z series and flagship models, as well as Apple iPhones, through its A3 line in Asan. However, analysts suggest that the existing production lines have reached their spatial limits due to the introduction of new high-performance equipment.
The recent expansion of the foldable phone market has also significantly increased display demand. Foldable phones require larger display areas for both cover and main panels compared to traditional bar-type smartphones, meaning that as sales rise, the pressure on display supply increases proportionately. Global PC manufacturers like Dell, HP, and Lenovo are increasing their adoption of OLEDs in IT products, while Apple is also expanding the application of OLEDs to iPads, accelerating demand for medium and large IT panels.
The expansion of the A7 line aligns with Samsung's ongoing mega-project investment plans in the Chungcheong region. Samsung Display aims to invest a total of 67 trillion won in the display sector by 2040, developing the Asan facility into a production base for smartphone and IT panels, as well as ultra-high-resolution micro-displays for next-generation extended reality (XR) devices.
* This article has been translated by AI.
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