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OLED panel production costs predicted to fall from now through 2026

DSCC predicts costs to fall due to increase in demand and better utilization of factories

OLED panels’ production costs are predicted to fall over the next several years, with the production costs of  65-inch QD-OLED panels expected to fall by as much as 30%.

What’s actually happening here is not necessarily production getting cheaper, but demand bouncing back to normal. According to flatpanelshd, Q3 of 2022 saw LG’s OLED TV panel factory running below 50% capacity due to a sharp decrease in demand for display panels. This meant that the production cost of each panel raised to significantly higher than the norm, with the market research firm Display Supply Chain Consultants’ (DSCC) reporting that LG TV’s production cost of WOLED panels increased dramatically in 2022.

See also: Samsung’s 2023 Smart Monitor line revealed

With demand returning to normal in 2023, DSCC predicts that production costs will fall steadily all the way through 2026.

“… by our estimates Samsung greatly improved QD-OLED yield throughout the year in 2022, the average yield for the year for 65” QD-OLED panels was only 68% in 2022. We expect that to improve to 84% in 2023 and 85% in 2024, and the big jump in yield in 2023 allows for a substantial improvement in total cost per unit, as shown on the next chart here. In addition to the yield improvement, the average fab utilization of SDC’s QD-OLED lines improves from 77% to 89%,” wrote Bob O’Brien, Co-Founder of DSCC. “The combination of these two factors, plus modest reductions in some component costs, allows for a 30% reduction in the 65” QD-OLED panel total cost in 2023 compared with 2022.”

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