Yuhong: Flexible organic light-emitting diode (OLED) will be the mainstream of the next generation of displays

Apple's touch panel supplier Sui Hong held an online legal person presentation today. Liu Hongliang, the strategy director of Shunhong, said that the flexible organic light-emitting diode (OLED) with touch solution will be the mainstream of the next generation of displays.

After Apple introduced the first iPhone X with an OLED panel, the market is concerned about when Apple will launch a mobile phone with a flexible OLED panel, allowing flexible, even foldable OLED phones to come out.

Liu Shiliang commented that the future OLED market scale exceeds 20 billion US dollars per year (about NT$600 billion), which is demanding on touch technology. At present, it seems that nano silver technology is closest to market demand, and Shunhong has invested the most resources. Commercialized as early as possible, it became the largest supplier of OLED touch products in 2019.

He said that Suihong has devoted a lot of efforts to nano-silver touch technology. Customers in South Korea or China have revealed their possible purchase intentions in the future, and are interested in flexible OLEDs with nano-silver touch products.

Liu Shiliang said that the touch industry has not been worse in the past two years. The pressure is mainly from peer competition. The first quarter of this year is affected by seasonal factors. The revenue may be reduced by 35% to 40% compared with the fourth quarter of last year, that is, the revenue is about NT$205. From 100 million yuan to 21 billion yuan, the profit-making part should be at least two yuan or a small profit.

Last year's performance, he said, it is very exciting. This year, 2019 will not be too bad. Under the competition of the same industry, profit will have some challenges, but through its own efforts, the profit will be pulled up, I believe that the development of new products will be certain. There will be progress.

Liu Shiliang said that this year is expected, the first and second quarters are affected by seasonal factors, product generations alternate, resulting in a decline in shipments, but in the first half of the year just use the off-season, continue to improve yield, efficiency, to meet the second half of the customer new product mass production.

He said that the first major customers should adopt a reciprocal attitude towards the touch suppliers, and the amount of orders will not be unique. Taking the fourth quarter of last year as an example, revenue from the largest customer accounted for 70% of the overall revenue, up from 68% in the third quarter; the second largest customer accounted for 10% of the overall revenue. The top 5 customers accounted for 93% of the total revenue, and the top 10 customers accounted for 96.7%.

In addition, in the past two years, Shunhong's small-size products accounted for a significant increase in overall revenue, from 41% in 2016 to 48%.

Suihong plans to spend 7.5 billion yuan on capital this year. In addition to the development of new models in the second half of the year, the old factory production lines in Xiamen are fully loaded and must be invested.