According to industry insiders, due to the growth of OLED panel capacity in mainland China, after 2019, Taiwan's LCD driver IC design company, driver IC back-end service company and IC material supplier will benefit a lot.

According to industry insiders, due to the growth of OLED panel capacity in mainland China, after 2019, Taiwan's LCD driver IC design company, driver IC back-end service company and IC material supplier will benefit a lot.

China's OLED materials and IC back-end service demand rises

Although South Korea's Samsung and LG Display currently dominate the global OLED panel market, Chinese flat panel manufacturers include BOE, Guoxing Optoelectronics (CSOT), Hehui Optoelectronics, Visionox, Xinli Optoelectronics, Tianma Microelectronics, Kunshan Guoxian Optoelectronics And Junyu Technology and others have entered the industry.

According to sources, in 2019, as more and more OLED panel production lines began commercial production, Taiwan's COF (film flip chip packaging) packaging service suppliers for OLED driver ICs, including Shan State Technology and Nanmao Technology, etc. More orders will be obtained from the above-mentioned Chinese mainland panel makers.

Shan State Technology and Nanmao Technology sources believe that COF will replace COG (glass flip chip) technology in 2019, becoming the mainstream packaging process for small-size smart phone panel OLED driver ICs.

According to sources, semiconductor material supplier Wah Lee Industrial expects sales to continue to grow by nearly 20% in the second half of the year as demand for related OLED devices and materials continues to grow.

Driven by its established distribution channels in China, Wah Lee's OLED business line sales increased 2.5 times in the first half of 2018, which also indicates China's strong demand for related OLED products.