Korea / Special Sits, Pairs, Index Rebalancing, Clepsydra Capital

Sanghyun Park

Korea / Special Sits, Pairs, Index Rebalancing

Thematic (Sector/Industry)

The whitelist lifting means that Japan is now able to export restrict about 1,200 materials/products to Korea. It is expected that Japan will unveil more details of the next measures on Aug 8. Until then, it's only a guessing game. Even after Aug 8, it is very possible that we won't have any clearer visual on the situation. Probably, this is what the Japanese government wants: creating uncertainties one after another. Nonetheless, we are not short of local speculations about which specific products or materials to be export restricted in the next round. Here are the 4 strong candidates being speculated by local media and industry experts.<ol>
<li>Silicon wafer</li>
<li>Shadow mask (FMM: fine metal mask)</li>
<li>Image sensor</li>
<li>Li-ion battery separator</li>
</ol>

The whitelist lifting means that Japan is now able to export restrict about 1,200 materials/products to Korea. It is expected that Japan will unveil more details of the next measures on Aug 8. Until then, it's only a guessing game. Even after Aug 8, it is very possible that we won't have any clearer visual on the situation. Probably, this is what the Japanese government wants: creating uncertainties one after another. Nonetheless, we are not short of local speculations about which specific products or materials to be export restricted in the next round. Here are the 4 strong candidates being speculated by local media and industry experts.
Silicon wafer
Shadow mask (FMM: fine metal mask)
Image sensor
Li-ion battery separator


Japan's Second Round of Export Restrictions Against Korea: 4 Candidate Products

Equity Bottom-Up

Now is the time for LG Display (LGD) to start supplying OLED for mobile devices to its biggest client, Apple, but with a focus on plastic-OLED (P-OLED). Apple plans to make a huge facelift to its iPhone 7s in 2017 with P-OLED. Samsung Display (SDC) signed its first display panel contract with Apple. The deal will last for three years until 2019. Apple will need a total production capacity of 150k/month for P-OLED panels by 2020.LGD is probably the only other display maker who has some real experience of mass producing P-OLED. LGD aims to have a production capacity of 30k/month for P-OLED panels in 2018, which is enough for about 40% of what Apple needs by then. Of course, there is still a question mark about LGD’s LGD’s actual capability of RGB OLED fabrication. But it is also important to note that LGD can capitalize on Korea’s strong OLED ecosystem, which it can use to catch up with SDC in RGD OLED fabrication.Nonetheless, there are several key areas, which LGD cannot easily address. First, LGD cannot get the industry’s best organic red, green and blue (RGB) material deposition equipment from Canon’s subsidiary Tokki, which has recently signed a 3-year exclusive supply deal with SDC. Second, Dainippon Printing’s (DNP, 7912 JP) production capacity for shadow mask, which is the most critical component in the entire P- OLED fabrication process, falls far short of meeting a growing demand.LGD is currently working with Sunic System (Dong A Eltek (088130)’s subsidiary) on the development of organic RGB deposition equipment. In regard to the shortage of shadow mask, LGD turned its eye to the ink jet technology developed by Systems Technology (039440).

Now is the time for LG Display (LGD) to start supplying OLED for mobile devices to its biggest client, Apple, but with a focus on plastic-OLED (P-OLED). Apple plans to make a huge facelift to its iPhone 7s in 2017 with P-OLED. Samsung Display (SDC) signed its first display panel contract with Apple. The deal will last for three years until 2019. Apple will need a total production capacity of 150k/month for P-OLED panels by 2020.LGD is probably the only other display maker who has some real experience of mass producing P-OLED. LGD aims to have a production capacity of 30k/month for P-OLED panels in 2018, which is enough for about 40% of what Apple needs by then. Of course, there is still a question mark about LGD’s LGD’s actual capability of RGB OLED fabrication. But it is also important to note that LGD can capitalize on Korea’s strong OLED ecosystem, which it can use to catch up with SDC in RGD OLED fabrication.Nonetheless, there are several key areas, which LGD cannot easily address. First, LGD cannot get the industry’s best organic red, green and blue (RGB) material deposition equipment from Canon’s subsidiary Tokki, which has recently signed a 3-year exclusive supply deal with SDC. Second, Dainippon Printing’s (DNP, 7912 JP) production capacity for shadow mask, which is the most critical component in the entire P- OLED fabrication process, falls far short of meeting a growing demand.LGD is currently working with Sunic System (Dong A Eltek (088130)’s subsidiary) on the development of organic RGB deposition equipment. In regard to the shortage of shadow mask, LGD turned its eye to the ink jet technology developed by Systems Technology (039440).

Challenges & Opportunities in LG Display's Plastic OLED Supply Chain

South Korea

Wave Electronics Company Ltd. manufactures and supplies power amplifier systems for wireless telecommunication and broadcasting service providers.

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Wave Electronics (095270 KS)

Japan's Second Round of Export Restrictions Against Korea: 4 Candidate Products

The whitelist lifting means that Japan is now able to export restrict about 1,200 materials/products to Korea. It is expected that Japan will...

Sanghyun Park

Challenges & Opportunities in LG Display's Plastic OLED Supply Chain

Now is the time for LG Display (LGD) to start supplying OLED for mobile devices to its biggest client, Apple, but with a focus on plastic-OLED...

Sanghyun Park

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