Into the History of 'TV LCD'... LGD's Bold Move for Next-Generation Displays

LG Display "Considering Production Suspension at Paju P7 Plant"
Contemplating Voluntary Leave for Production Workers
Accelerating Transition to Next-Generation Display Production like OLED

Panoramic view of LG Display Paju Factory. [Photo by LG Display]

[Asia Economy Reporter Han Yeju] LG Display is withdrawing from the TV liquid crystal display (LCD) panel business. It is considering halting operations at its Paju LCD TV production plant, following the same path as Samsung Display. With this, LCD TV panels will disappear into history.

According to industry sources on the 20th, LG Display recently announced, "We are reviewing the termination of production at the Paju LCD TV manufacturing plant." During the Q3 earnings conference call, LG Display had stated that it would advance the planned end date for domestic TV LCD production by 6 months to a year and gradually reduce production of 8th-generation TV LCD panels in Guangzhou, China. In just over two months, the company has officially expressed its intention to wind down its LCD business.

The Paju P7 plant, completed in 2005, began full-scale production of LCD TV panels the following year and was regarded as a leader in the display industry. However, it could not withstand the low-price competition from Chinese panels, the shrinking LCD market, and deteriorating profitability due to price declines. Earlier, Samsung Display also completely exited the LCD business at the end of June.

This decision is expected to accelerate LG Display's transition to next-generation display production. LG Display recently became the first in the world to successfully develop a free-form display called the 'Stretchable Display,' which can be freely expanded, folded, crumpled, and twisted. In line with the growth of the global automotive industry, it is expanding into mobility sectors such as transparent OLED, invisible speakers, and automotive P-OLED. It is also focusing on developing 'Oledos' in preparation for the arrival of the XR (extended reality) market. The company plans to thoroughly develop technology in advance to enter the market at its opening phase.

There is also growing speculation that the Paju P7 plant could be converted into a TV OLED line. However, it is expected to continue focusing on producing relatively profitable, high value-added LCD IT panels used in tablets, laptops, and PCs.

Along with accelerating business structure reorganization and reallocating personnel to other affiliates, LG Display is reportedly considering implementing voluntary leave for production workers soon. This is interpreted as a measure to manage personnel efficiently.

Meanwhile, LG Display plans to fulfill all long-term contract orders with customers and is expected to halt operations at the Paju P7 plant by the end of this month. Going forward, LG Display will produce LCD TV panels only at its Guangzhou plant in China. The Paju P8 plant is expected to manufacture only LCD IT panels used for monitors and similar devices.

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