As the supply/demand ratio is expected to tighten dramatically, Samsung is moving to significantly extend capacity at its A2 5.5G fab from 2013-2014. Additionally, the company may also accelerate its plans for A3, another new AMOLED production line.
Rapid growth of smartphones and tablets, in conjunction with the continued shift towards larger average TV sizes, are driving a recovery of the FPD industry. In fourth-quarter 2012, average operating margins for flat panel display makers turned positive for the first time since third-quarter 2010, and this trend is forecast to continue. Additionally, the outlook for fab utilization, equipment spending and technology upgrades is improving in 2013 and potentially will continue into 2014.