LGD Wants To Invest 7 Billion US Dollars To Set Up OLED TV Panel Factory In Guangzhou

- Mar 13, 2019-

According to South Korean media reports, South Korea's LG Display said on Tuesday that it plans to invest 7.8 trillion won (about 7 billion US dollars) to expand production facilities to manufacture large and small OLED panels.

LG Display said in a separate statement that it will increase the capacity of large OLED panels in China through joint ventures. In the second quarter, LG Display's operating profit increased to 804 billion won (about 721 million US dollars), compared with 44.4 billion won a year ago.

South Korean media The Investor reported on the 25th that LGD discussed relevant issues at the board meeting on the 25th. This is the first time LGD has manufactured OLED panels overseas.

According to the report, LGD originally wanted to produce OLED TV panels in the P10 plant in Paju City, Gyeonggi-do, South Korea. However, as the demand for OLEDs for mobile phones soared, the company decided to change its plan and boost the P10's mobile phone OLED production capacity.

Reducing costs is another consideration. The Chinese government often provides tax incentives to manufacturers that produce locally. The news pointed out that LGD considered to manufacture 65-inch OLED panels in Guangzhou factory later in the year (2018). The plant currently produces 8.5 generation LCD panels.

Previously, Xiaomi and LGD signed a contract, and next year's flagship opportunity will be equipped with LGD's OLED screen. However, the new news from the South Korean side said that the LGD plant was delayed in production, which led to Xiaomi’s refusal to change to Samsung’s Samsung Display.

Investor quoted The Bell as saying that Xiaomi and Samsung Display signed a contract. Next year's flagship machine "Millet 7" will use Samsung's 6.01-inch hard OLED panel. The first panels will be shipped in December this year, with a total of 1 million units. Monthly shipments increased to 2.2 million units.

Xiaomi originally looked for LGD, and Xiaomi 7 plans to use a 5.49-inch flexible OLED panel, which is more upscale than the rigid OLED supplied by Samsung. However, the LGD E5 factory was originally scheduled to start in August, but now it will take three months to start production, resulting in cooperation and change. It is understood that the resolution of LGD panel is upgraded from Full HD to QHD (4K), which is not progressing smoothly, which makes E5 postponed production.

Originally LG's flagship machine "LG V30" in the second half of the year is LG's first model to adopt OLED panels. Whether the E5 factory will cause V30 to abandon OLED is worthy of attention. The V30 is scheduled to debut at the Consumer Electronics Show (IFA) in Berlin, Germany on August 31st.