The vast majority of existing capacity for display backplanes is dedicated to TFT LCD production, but capacity dedicated to AMOLED backplanes, or capacity that can serve either AMOLED or TFT LCD, particularly that which uses oxide TFT technology, is expected to grow very rapidly.
"With the success of the AMOLED displays in Samsungs Galaxy smartphones, manufacturing for AMOLED mobile displays appears to have matured," said Jae-Hak Choi, Senior Analyst for FPD Manufacturing at NPD DisplaySearch. "In contrast, OLED TV has experienced various technical hurdles and roadblocks. The primary reason for the high cost of OLED TV is its low yield ratio," Choi added. "The organic material evaporation process is a bottleneck for OLED TV panels made using the RGB method, and oxide TFT yields have not met expectations."
According to the NPD DisplaySearch cost model, the manufacturing cost for a 55" TV using TFT LCD TV is $426, while the cost for manufacturing the same size TV with RGB OLED is $7,300, and using WOLED is $3,600. The main reason for the cost discrepancies can be attributed to the current low yields for OLED display manufacturing, the need to invest in expensive manufacturing equipment, and the high cost of OLED materials.