OLED TV Manufacturing Challenges and Costs

OLED television models typically carry higher price points than LCD alternatives, particularly with increasing display sizes. This premium is primarily attributed to the complex and precise manufacturing process required for OLED panels.

Errors during production can render an OLED screen unusable, contributing to higher costs.

Cost Evolution and Yield Rates

The cost of producing a 65-inch OLED panel decreased from approximately $1,000 in 2020 to about $600 by 2024. In comparison, a 65-inch LCD TV can be purchased for under $500.

A significant factor influencing OLED TV prices is the yield rate, which represents the percentage of usable panels from a production batch.

Samsung's QD-OLED yield improved from 68% in 2022 to 84% in 2023. This improvement supported a 30% price reduction for 65-inch QD-OLED panels.

LG Display, another major OLED vendor, also achieved a 30% cost reduction by enhancing its yield rates. However, one of its OLED TV factories operated at only 50% capacity as of 2022, necessitating the coverage of consistent fixed costs.

Impact of Panel Size

The size of the OLED panel directly correlates with production risks and material consumption.

A Gen 8.5 production line sheet can produce either six 55-inch panels or three 65-inch screens. Larger displays require more material and increase the likelihood of production issues.

Historical and current pricing examples for larger OLED panels include:

• A 77-inch OLED TV cost $20,000 in 2016.
• A 97-inch OLED screen currently costs $25,000, influenced by the limited number that can be produced per sheet.
• In contrast, 98-inch quantum-dot LCD televisions are available for approximately $2,200.