A. OLED evaporation material is the core functional material that makes OLED panel achieve luminescence, which determines the display quality of OLED panel, has high purity and consistency requirements, and its quality and quality directly affect the performance, yield and stability of OLED panel.

So far, the state and local governments have successively introduced a series of encouraging policies to vigorously promote the development of the OLED industry, providing favorable policy support for the development of OLED evaporation materials, and the relevant contents are as follows:

Policy 1 Name: Catalogue of Industries Encouraging Foreign Investment (2022 Edition)

Issued by: National Development and Reform Commission, Ministry of Commerce

Release date: October 2022

Policy content: TFT-LCD, OLED, AMOLED, laser display, quantum dot, 3D display and other flat panel displays, display material manufacturing (except TTFT-LCD glass substrates for the 6th generation and 6th generation) are listed in the national catalogue of industries that encourage foreign investment.

Policy 2 Name: Notice on the Administrative Measures for Import Tax Policies to Support the Development of New Display Industry from 2021 to 2030

Issued by: Ministry of Finance, National Development and Reform Commission, Ministry of Industry and Information Technology

Release date: March 2021

Policy content: New display device manufacturers are exempt from import tariffs for self-use production raw materials, consumables and clean room supporting systems, production equipment spare parts, as well as key raw materials and spare parts for the new display industry, and manufacturers of new display devices that cannot produce or whose performance cannot meet the demand for self-use production raw materials and consumables that cannot be produced in China or whose performance cannot meet the demand.

Policy 3 Name: Notice on Soliciting Comments on the 2021 Application Guidelines for 18 Key Special Projects including the "Fourteen" National Key R&D Plan "Oxygen Energy Technology"

Issued by: High-tech Department, Ministry of Science and Technology

Release date: February 2021

Policy content: It is planned to launch the implementation of the "New Display and Strategic Electronic Materials Key Project", and it is planned to launch 30 guide tasks around three technical directions such as new display materials and devices, including evaporation OLED flexible display industrial application demonstration. 

B. according to statistics, in the mobile phone OLED panel, OLED evaporation materials account for about 30% of the total cost, and in the TV OLED panel due to the higher demand for OLED functional materials in large-size display panels, the cost of OLED evaporation materials accounts for more than 46%.

With the development of the downstream terminal market of OLED panels, the shipment of OLED panels has increased year by year, and the demand for OLED evaporation materials has also increased. The demand for OLED evaporation materials in 2019 was about 77.8 tons, and the demand in 2020 was 88.2 tons, an increase of 13.4%. According to statistics, the total market demand for OLED evaporation materials in 2021 will be 110.3 tons, an increase of 25% over 2020.

In the Chinese market, due to the late start of the domestic OLED evaporation material industry, there is a certain gap in technology with Japan, South Korea, Europe and the United States, but in recent years, with the expiration of relevant patents and the development of the domestic OLED market, the gap between domestic OLED evaporation material companies and foreign countries has gradually narrowed. According to statistics, the domestic market size of OLED evaporation materials exceeded 2.5 billion yuan in 2021, and it is expected that the number will increase to more than 4.5 billion yuan by 2025.