UPDATED. 2019-10-17 05:58 (목)
YAS will complete its new factory in August
YAS will complete its new factory in August
  • Jong Jun LEE
  • 승인 2019.05.24 12:10
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For the production of LG Display 10.5 generation OLED deposition equipment
Source: YAS (8G in-line deposition system for OLED TV)
Source: YAS (8G in-line deposition system for OLED TV)

YAS, the only deposition equipment maker mass-producing large OLEDs, expects to complete its new factory for the production of 10.5-generation (10.5G) equipment at the end of August. A formal order (PO) is expected at the time of completion of the factory. The 10.5G deposition equipment to be produced here will be in stock at the P10 factory of LG Display in Paju City, Gyeonggi-do, starting early next year.

According to the industry on the 20th, YAS is building a new factory (FAB 4) next to its existing Paju production factory (FAB 3) for the first 10.5G deposition equipment production. The new factory is scheduled to be completed by the end of August. YAS has been manufacturing the 8G deposition equipment at the FAB3 factory to be delivered to LG Display.

The generation categorization of display equipment indicates the difference in substrate area. The 10.5G substrate (2940 mm x 3370 mm) is wider than the 8G (2,200 mm x 2,500 mm). The larger the substrate handled by the equipment, the larger the size of the equipment. At the FAB3 factory, manufacturing 10.5G deposition equipment is difficult. 

Upon the completion of the FAB4 factory, YAS is expected to have formal orders (PO) for 10.5G deposition equipment from LG Display. LG Display has already sent a Letter of Intent to Purchase to YAS. Once POs are made in the third quarter of this year, 10.5G equipment will enter the P10 factory in Paju early next year.

LG Display's 10.5G OLED production line will be on track with the deposition equipment orders. An executive of LG Electronics, an affiliated company of LG Display, said at an official event that “the 10.5G production line will begin its operation in 2021.” Another equipment maker, Jusung Engineering, is also in the process of producing 10.5G TFT CVD equipment after receiving equipment orders from LG Display.

The price of 10.5G equipment is estimated to be around 100 billion won. When YAS first supplied LG Display, the cost of 8G deposition equipment was around 100 billion won. As the size increases, the unit price is likely to increase more.

This year, YAS is expected to record the highest sales to date, exceeding its sales last year. YAS's sales last year were 184.5 billion won, more than double the previous year's (86.5 billion won), thanks to two orders for 8G deposition equipment. All of this equipment was put into LG Display's 8.5G (2,200㎜ × 2,500㎜) OLED factory in Guangzhou. During the same period, YAS posted an operating profit of 44.2 billion won. Last year’s operating margin was 23.9%.


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