Samsung Display is hoping to better compete with LG Display on the price of OLED panels by maximising the efficiency of its production lines, according to a report by AV Caeser. 

The report cites claims by the research firm Display Supply Chain Consultant that Samsung Display is hoping to reduce the manufacturing costs of its QD-OLED TV panels by around 30% before the end of this year. It will make better use of its production lines and increase output in order to reduce the cost of a 65-inch QD-OLED panel to just $750, narrowing the gap between its products and LG Display’s White OLED panels. 

DSCC said Samsung Display is aiming to boost the production yield of its 8.5 Gen Q1 production line in Asan from 90% and bring it closer to 100%, while also increasing its capacity. The Q1 line currently manufactures 34-inch, 49-inch, 55-inch, 65-inch and 77-inch QD-OLED panels. 

The current cost of a 65-inch QD-OLED panel is around $1,100, DSCC said. But while Samsung Display believes it can reduce this to just $750 by the end of the year, productivity gains in the coming years will be more limited. By 2026, DSCC said Samsung Display is aiming to reduce production costs to $600. 

Unfortunately for Samsung Display, its rival LG Display is not idly sitting by, and it also plans to reduce the costs of its own OLED panels. It said the price of a 55-inch WOLED panel made at its facility in Guangzhou, China, is likely to fall to below $400 at the end of this year, then to $300 by 2024, and ultimately just $200 in 2026. The cost of a 65-inch WOLED panel produced at the same facility will be $500 this year. 

However, it’s notable that LG Display has to balance production in Guangzhou against production at its factory in Paju, South Korea, where costs are higher - with a 65-inch panel set to cost $650 at the end of 2023.