[Post-Corona Strategy] LG Display Solidifies OLED Dominance in Premium TVs

An LG Display employee is producing panel glass substrates on the manufacturing line.

[Asia Economy Reporter Dongwoo Lee] LG Display is actively responding to the demand for organic light-emitting diode (OLED) to overcome the COVID-19 crisis and secure a leading position in the future premium TV market.

To this end, the company plans to switch to a two-track system by producing large OLED panels, which were previously manufactured in Paju, also at its Guangzhou plant in China. Since OLED technology has a high entry barrier and other companies except Korea have not reached the mass production stage, LG Display plans to widen the gap with competitors starting with the operation of the Guangzhou OLED factory.

So far, LG Display has established a complete system from OLED development to production and sales, achieving a golden yield in just three years, compared to ten years for LCD. The company intends to apply this successful know-how to the Guangzhou OLED factory to maximize production efficiency.

Despite the spread of COVID-19, LG Display is making an all-out effort for the rapid mass production of the 8.5-generation OLED factory in Guangzhou. In March, LG Display dispatched 290 researchers and engineers to Guangzhou, and sent an additional 170 personnel last month.

Once the Guangzhou OLED factory starts operation, LG Display plans to produce 60,000 glass substrates per month, based on input, and eventually expand to 90,000 per month. One 8.5-generation substrate can produce six 55-inch TV panels. Furthermore, when the P10 plant, the 10.5-generation OLED factory in Paju, is also operational, LG Display's large OLED production volume is expected to increase further.

LG Display will completely halt its domestic TV LCD business, which has been pointed out as the cause of profitability deterioration, by the end of this year. Since the cost of purchasing panel components such as polarizers from LG Chem exceeded 1 trillion won annually, the company plans to cut losses and focus on the OLED business.

Based on this, LG Display aims to achieve economies of scale to secure productivity and profitability, while firmly establishing OLED as the mainstream in the premium TV market.

This content was produced with the assistance of AI translation services.