Christo Robin

iPad Air to Switch to OLED in 2027… Samsung Display to Begin Mass Production as Early as Year-End Apple will transition the display of next year's iPad Air to OLED. Following the iPad Pro and Mini, the Air will mark the adoption of OLED across Apple's entire tablet lineup except for the base model, and the domestic display industry supplying OLED to Apple is expected to see expanded benefits. According to industry sources on the 15th, Samsung Display plans to begin mass production of OLED panels for the iPad Air around year-end or January of next year, in order to supply display panels for Apple's next-generation iPad Air slated for release in the first half of next year. The industry expects the iPad Air to launch in either March or May of next year. An industry official said, "While specific volumes have not been confirmed, iPad Air sales have historically exceeded those of the iPad Pro. Unlike the iPad Pro, which saw lower-than-expected demand after its price rose with the adoption of OLED, the iPad Air will use a lower-spec, lower-cost OLED, and is expected to outsell the iPad Pro." The OLED for next year's iPad Air will feature a single-stack emissive layer, low-temperature polycrystalline silicon (LTPS) thin-film transistors (TFT), and a hybrid substrate. As a result, starting next year, all Apple tablet lineups except the base model will have transitioned to OLED. The base model and this year's iPad Air still use mini-LED backlit LCD panels. The iPad Air will be the fourth Apple IT device (across tablets and monitors) to adopt OLED. Apple applied OLED to the iPad Pro (11- and 13-inch) in 2024, followed by the iPad Mini (8.5-inch) and MacBook Pro (14- and 16-inch) this year. As Apple accelerates the OLED transition for tablets and notebooks that previously used LCD, the favorable landscape for the domestic display industry supplying these panels is expected to continue. Currently, Samsung Display and LG Display split the supply of OLED panels for the iPad Pro. Samsung Display will supply panels for this year's MacBook Pro and iPad Mini. According to market research firm Omdia, tablet OLED demand is forecast to grow from 11 million units in 2025 to 13 million in 2026 and 21 million in 2027. Apple is expected to account for roughly two-thirds of that volume. $AAPL

[Exclusive] Samsung Foundry 2nm Yield at 55%… Stuck Below the 'Mass Production 60%' Threshold Samsung Electronics' foundry business — a key future growth engine — has hit a wall at the '60% mass production' threshold for its 2nm (nanometer; 1nm = one-billionth of a meter) process. With yields stuck in the mid-50% range and failing to enter stable mass production territory, effective yields are expected to drop to the 40% range once back-end processing is factored in. While the company has succeeded in achieving technical entry, the consensus is that it remains insufficient to win orders from global Big Tech clients. According to semiconductor industry sources on the 13th, Samsung Electronics' foundry division's average yield for the 2nm process is understood to be approximately 55%. This is lower than the '60%-plus' estimates floated by some, signaling that additional time is still needed to reach mass production stability. A source with knowledge of internal affairs stated, "The 2nm process yield is in the 50–60% range, with an average around 55%," adding, "The process is running, but it is still a long way from a stable mass production phase." The pace of yield improvement itself has been rapid. Samsung's foundry 2nm yields were reportedly stuck in the 20% range as recently as the second half of last year. Reaching the mid-50s in less than a year is assessed as technically reaching a level where the mass production line can be operated. This is attributed in part to the accumulation of process experience driven by incoming orders for Bitcoin mining chips from China's Canaan and MicroBT, among others. Given the extreme difficulty of the 2nm ultra-fine process, some consider this an exceptionally fast rate of improvement. However, the prevailing view in the industry is that it remains a "half-process" at best. In a structure where nearly half of all wafer input is discarded as defective, the process fails on both price competitiveness and delivery reliability. In particular, when factoring in losses from performance binning and packaging, the actual percentage of chips that can generate profit is estimated to fall as low as 40%. Considering that a single wafer for cutting-edge processes costs tens of millions of won, a 1% difference in yield translates to annual operating profit differences ranging from hundreds of billions to trillions of won. This is bound to significantly derail Samsung Electronics' efforts to improve foundry business profitability. An industry source said, "A yield in the 50% range only means the process 'runs' — it is not a stage where customers can entrust orders with confidence," adding, "It is a zone where both delivery and quality variability coexist." By contrast, rival TSMC is reported to have secured stable yields of 60–70% for its 2nm process. Samsung Foundry's current mid-50% yield is therefore assessed as corresponding to the technical entry stage, but falling short for securing major customers — a "transitional zone." Significant progress has been made, but analysis suggests actual mass production remains premature. In practice, Samsung has secured some customer and internal volumes, but has yet to achieve results in winning key clients such as Apple, NVIDIA, and AMD. Notably, Qualcomm — a global mobile application processor (AP) company that had raised expectations for new orders — is also showing signs of returning to TSMC, citing process yield and stability concerns. Additionally, the 'AI6' advanced autonomous driving chip contracted with Tesla is scheduled for mass production this year, and the yield level achieved at the actual production milestone will be critical in determining profitability and supply stability. Meanwhile, Samsung Electronics' strategy is to win new orders, run its facilities, and improve yields going forward. At Samsung Electronics' annual general meeting on March 18, Han Jin-man, head of the foundry business division (President), stated, "For the 2nm process as well (which is at a higher level than the 4nm process), we can build up order experience with major companies and secure yields through that process." $INTC $TSM

[Exclusive] Samsung Foundry 2nm Yield at 55%… Stuck Below the 'Mass Production 60%' Threshold Samsung Electronics' foundry business — a key future growth engine — has hit a wall at the '60% mass production' threshold for its 2nm (nanometer; 1nm = one-billionth of a meter) process. With yields stuck in the mid-50% range and failing to enter stable mass production territory, effective yields are expected to drop to the 40% range once back-end processing is factored in. While the company has succeeded in achieving technical entry, the consensus is that it remains insufficient to win orders from global Big Tech clients. According to semiconductor industry sources on the 13th, Samsung Electronics' foundry division's average yield for the 2nm process is understood to be approximately 55%. This is lower than the '60%-plus' estimates floated by some, signaling that additional time is still needed to reach mass production stability. A source with knowledge of internal affairs stated, "The 2nm process yield is in the 50–60% range, with an average around 55%," adding, "The process is running, but it is still a long way from a stable mass production phase." The pace of yield improvement itself has been rapid. Samsung's foundry 2nm yields were reportedly stuck in the 20% range as recently as the second half of last year. Reaching the mid-50s in less than a year is assessed as technically reaching a level where the mass production line can be operated. This is attributed in part to the accumulation of process experience driven by incoming orders for Bitcoin mining chips from China's Canaan and MicroBT, among others. Given the extreme difficulty of the 2nm ultra-fine process, some consider this an exceptionally fast rate of improvement. However, the prevailing view in the industry is that it remains a "half-process" at best. In a structure where nearly half of all wafer input is discarded as defective, the process fails on both price competitiveness and delivery reliability. In particular, when factoring in losses from performance binning and packaging, the actual percentage of chips that can generate profit is estimated to fall as low as 40%. Considering that a single wafer for cutting-edge processes costs tens of millions of won, a 1% difference in yield translates to annual operating profit differences ranging from hundreds of billions to trillions of won. This is bound to significantly derail Samsung Electronics' efforts to improve foundry business profitability. An industry source said, "A yield in the 50% range only means the process 'runs' — it is not a stage where customers can entrust orders with confidence," adding, "It is a zone where both delivery and quality variability coexist." By contrast, rival TSMC is reported to have secured stable yields of 60–70% for its 2nm process. Samsung Foundry's current mid-50% yield is therefore assessed as corresponding to the technical entry stage, but falling short for securing major customers — a "transitional zone." Significant progress has been made, but analysis suggests actual mass production remains premature. In practice, Samsung has secured some customer and internal volumes, but has yet to achieve results in winning key clients such as Apple, NVIDIA, and AMD. Notably, Qualcomm — a global mobile application processor (AP) company that had raised expectations for new orders — is also showing signs of returning to TSMC, citing process yield and stability concerns. Additionally, the 'AI6' advanced autonomous driving chip contracted with Tesla is scheduled for mass production this year, and the yield level achieved at the actual production milestone will be critical in determining profitability and supply stability. Meanwhile, Samsung Electronics' strategy is to win new orders, run its facilities, and improve yields going forward. At Samsung Electronics' annual general meeting on March 18, Han Jin-man, head of the foundry business division (President), stated, "For the 2nm process as well (which is at a higher level than the 4nm process), we can build up order experience with major companies and secure yields through that process." $INTC $TSM