LG Display Starts Mass Production at Guangzhou Plant in China… Jung Ho-young: "Large OLED is a Core Axis for Future Growth"

8.5th Generation OLED Panel Factory Mass Production Shipment Ceremony
Capable of Producing 60,000 Substrate Glass Sheets per Month
Product Diversification and Strengthened Collaboration with Different Industries

Jung Ho-young, President and CEO of LG Display

[Asia Economy Reporter Dongwoo Lee] LG Display announced that its 8.5-generation organic light-emitting diode (OLED) panel factory located in Guangzhou, China, has entered full-scale mass production.

On the afternoon of the 23rd, Jung Ho-young, President of LG Display, emphasized at the mass production shipment ceremony of the 8.5-generation OLED panel factory located in the Guangzhou High-tech Industrial Development Zone, Guangdong Province, China, that “large OLED is a core pillar of LG Display’s future growth.”

President Jung said, “With the full operation of the new Guangzhou factory, we will accelerate both quantitative and qualitative growth of the large OLED business,” adding, “We must further strengthen our leadership in the large OLED business by expanding the technology gap with latecomers and differentiating our products.”

The Guangzhou factory, a new large OLED plant, is expected to be more advantageous for producing extra-large and high value-added products due to its high efficiency and productivity.

LG Display now has a production capacity of 130,000 sheets per month, combining the Guangzhou factory in China, which produces 60,000 sheets per month based on mother glass, and the Paju factory, which produces 70,000 sheets per month. In response to increasing market demand, the Guangzhou factory plans to expand production to 90,000 sheets per month.

By maximizing the production capacity of the two factories, LG Display expects to be able to produce more than 10 million OLED TV panels annually (based on 55 inches), which is also expected to strengthen profitability through economies of scale. According to market research firm Omdia, OLED TV panel shipments are projected to grow steadily from 4.4 million units in 2020 to exceed 12 million units by 2025.

LG Display Guangzhou, China 8.5-Gen OLED Factory Panorama

The company plans to strengthen timely product supply to customers, apply new technologies, diversify products, and collaborate with different industries to provide differentiated value and premium features unique to OLED.

The trend of increasing OLED adoption among global TV manufacturers is also favorable. Starting with LG Electronics in 2013, major companies such as China’s Skyworth, Konka, Changhong, Hisense; Japan’s Sony, Toshiba, Panasonic, Funai; and Europe’s Philips, Grundig, Loewe, Metz, Vestel, Bang & Olufsen are producing OLED TVs. Notably, this year, four additional companies?U.S. Vizio, Japan’s Sharp, China’s Huawei, and Xiaomi?have joined the OLED camp, bringing the total number of OLED TV set manufacturers to 19.

The path to mass production at the Guangzhou OLED factory was not smooth. The outbreak of the novel coronavirus disease (COVID-19) earlier this year disrupted normal operations. In response, the company dispatched about 900 key engineers locally via charter flights four times from March to this month, efforts that culminated in the commencement of mass production.

The OLED panel mass production shipment ceremony was attended by key executives and employees, including President Jung, Chief Production Officer (CPO) Vice President Shin Sang-moon, Vice President Yang Jae-hoon, Head of Management Support Group, and Park Yoo-seok, Managing Director of the China CO Corporation.

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