Thursday, December 22, 2016

Applied Materials reportedly missing out on ALD for OLED encapsulation

Applied Materials is world leading in CVD processing for wafer and display. However, i big part of the CVD equipment market today is the booming segment of ALD where Applied only have single digit percentage of the revenue. According to a recent report by Seeking Alpha, "Applied Materials is facing strong competition as its deposition technology is being supplanted by Atomic Layer Deposition at Samsung Electronics and LG Display". Other applications where Applied Materials did not enter with ALD include:
  • DRAM High-k MIM Capacitors
  • Logic High-k Metal Gate Stack 
  • Double Patterning 
However, Applied Materials has reported strong revenue in Selective Etch and Olympa ALD (>USD 230M) Possibly they have some advanced Spatial ALD technology up the sleeve also for OLED encapsulation.

 Watch For Big Display Equipment Cancellations Coming From Applied Materials

  • Tight supply of a critical piece of OLED equipment from Canon Tokki will limit OLED production in 2017 and impact Applied Material's sales of supplemental equipment.
  • Applied Materials also is facing strong competition as its deposition technology is being supplanted by Atomic Layer Deposition at Samsung Electronics and LG Display.
  • As much as $1 billion in display equipment from Applied Materials could be cancelled in 2017.
Full report

More details on the Canone Tokki and Apple OLED roll out story here from Bloomberg:

Apple's Search for Better iPhone Screens Leads to Japan's Rice Fields [Bloomberg TV]

The ELVESS OLED mass production system. Source: Canon Tokki Corp.