LG Display CEO Cheng Yingshou said that the company's LCD oversupply in the fourth quarter is not too worrying. And said the company will actively promote the OLED and solar cell business.
According to a report on July 17, LG Display Co. CEO Kwon Young-soo is bearish on the market's recent surge in flat panel display production, which may cause oversupply in the fourth quarter.
Quan Yingshou said that although there may be a slight oversupply at the end of the fourth quarter or the beginning of the first quarter of 2010, due to the serious shortage of glass, Taiwan's liquid crystal display (LCD) production plants are difficult to operate at full capacity.
Asian LCD makers are experiencing a shortage of major panel components such as glass, and are currently in the back-to-school and holiday shopping season, with strong PC and TV sales, and demand for flat panel displays is improving.
Quan Yingshou said that due to the weak sales situation and the backwardness of technology caused by the large-scale reduction in production at the end of 2008, Taiwan LCD manufacturers will cut production, so the fierce competition between LCD manufacturers in South Korea and Taiwan will not occur in the near future.
Lee Bang-soo, vice president of public affairs at LG Display, said that LG Electronics and Samsung Electronics have agreed to buy small LCD flat panel displays from each other. The two companies will sign up within one to two months. protocol. The two companies previously purchased flat panel displays from their respective affiliates and other overseas LCD manufacturers.
Quan Yingshou expects supply and demand to remain tight, and the global economy is recovering, which is also optimistic about the company's fourth-quarter performance prospects. He also said that organic light-emitting diodes (OLEDs) and solar cells will be the driving force behind the performance. The company will actively promote the development of this part of the business, and plans to produce 30-inch OLED TV panels in 2012.
OLEDs are commonly used in portable devices such as mobile phones and digital cameras. Solar cells replace the expensive crystalline silicon solar cells with silicon.
LG Display announced on the 16th that its second-quarter earnings report showed a net profit of 306 billion won ($238.6 million), a sharp drop from the 759 billion won in the same period in 2008. However, the company achieved a turnaround and a net loss of 25.5 billion won in the first quarter.
LG Display's operating profit for the second quarter fell 75.5% to 218 billion won from 890 billion won in the same period in 2008, and sales increased 16.1% from 4.211 trillion won to 4.891 trillion won.