Message change in “Sample test·Launch within 12 months”
Commercialization plan for next year… expected to enter into competition with German short circuit
Samsung Electronics-Samsung Display supply chain competition is also interested
Corning’s foldable phone cover glass development has entered the final stage. When Corning products are released next year, competition between Corning and German Shot’s cover glass, and Samsung Electronics and Samsung Display’s cover glass post-treatment process is expected to intensify.
On the 24th, an official from Corning said, “The vending glass solution has entered the final stage of development,” and “will be commercialized in 2021.” Corning’s bendable glass refers to the cover glass of foldable products.
The expression’entering the final stage of development’ is ambiguous, but it is more concrete than the existing message. Corning has revealed the timing of commercialization of foldable phone cover glass from “the next two to three years” to “the next 18 months” and “the next December”. In September, Corning maintained its original position, “(Vendable Glass is being sampled with a customer) and will be released within 12 months.”
According to Corning, the message related to bending glass has changed recently. In comments to investors in the fourth quarter, it seems that Corning has begun to use the expression that’Vendable Glass has entered the final stage of development’.
When Corning commercializes foldable phone cover glass next year, the competition between Corning and Short is expected to intensify. SCHOTT supplied the original Ultra New Glass (UTG) glass, a cover glass material applied to Samsung Electronics’ foldable phone this year. When Dow Insys, a subsidiary of Samsung Display, post-processes the Corning glass original plate, Samsung Display completed the foldable phone panel by combining it with an organic light-emitting diode (OLED) panel.
At the same time, competition in Samsung’s internal foldable phone cover glass post-processing supply chain is also expected to become visible. Samsung Electronics’ wireless division has established its own supply chain due to the high price of foldable phone panels supplied by Samsung Display. When Corning’s original glass plate is supplied, the supply chain of Samsung Electronics’ wireless business unit can be operated.
Samsung Electronics’ wireless division has already completed a test of cutting UTG with laser cutting equipment. It is known that the production yield and strength of the laser cutting UTG are superior to that of the existing Dowoo Insys (Samsung Display supply chain) wheel cutting method. In September, JT, a domestic company, also announced that it would supply UTG laser cutting equipment worth 800 million won to Corning. This equipment is used to process a glass disk into a foldable phone cover window.
Samsung Electronics is expected to increase the application rate of laser cutting equipment by adding a part of the laser cutting method to Dowoo Insys’ existing UTG post-processing process rather than making a big change right away.
Dowoo Insys’ production capacity, currently estimated at 600,000 to 700,000 units per month, has not changed much. At the beginning of this year, the industry predicted that Samsung Electronics would increase its Dowooinsys production capacity to 1 million units per month by the end of the year. However, this year’s foldable phone sales amounted to 2.7 million units, which is 60% of Samsung Electronics’ original expectations of 4.5 million to 5 million units, reducing the need to increase production capacity right away. However, if Samsung Electronics wants to apply the laser cutting method to a new foldable phone that will be released in the second half of next year, it is expected that it will have to order related equipment within the first quarter of next year at the latest.
The Galaxy Z Fold 2, released in the second half, is evaluated for improving its usability and durability compared to its previous Galaxy Fold 1st generation product, but its high price exceeding 2 million won and its weight close to 300g are acting as obstacles to popularization.
Meanwhile, Samsung Electronics’ wireless division has complained about the high price of Samsung Display’s UTG post-processing process. From the perspective of Samsung Display, an exclusive contract with Short for a stable supply of glass plates was made for three years, but the wireless division of Samsung Electronics is known to have determined that it is difficult to lower the panel price due to the exclusive contract. It is not unrelated to this that the wireless division of Samsung Electronics has established a separate supply chain to receive original glass plates from Corning.
Copyright © The Elec, the electronic component specialty media Unauthorized reproduction and redistribution are prohibited.