LG Display Company has completed the construction of its $4.2-billion OLED factory in China. The company said on Friday that it plans to start mass production of large screens for premium televisions at the new factory. The Korean company plans to roll out 60,000 OLED sheets per month at the factory in the initial stage. The output would be gradually increased to reach a total monthly output capacity of 1,30,000 units this year. The output target is combined with its production line at South Korean factory in Paju, north of Seoul.
According to Yonhap news agency, LG has built the Guangzhou factory for the production of organic light-emitting diode (OLED) sheets sized over 55 inches. LG has grand plans for the new production line of OLED panels. The report notes that LG Display plans to ramp up the monthly production at the two factories to over 10 million by 2022. With the new factory, LG will be in a position to compete with its Korean rival Samsung.
The firm has been expanding investment in OLED panels to shift from the traditional liquid crystal display (LCD) panels that have been plagued by falling demand and a supply glut, partly from Chinese producers. LG Display suffered an operating loss of 368.7 billion won in the second quarter due to low LCD panel prices and weak global demand.
The average price of the firm’s 50-inch LCDs for TVs dropped 7.5 per cent year-on-year in the second quarter, according to WitsView, a division of TrendForce. This year, LG Display has vowed to speed up the transition from LCD to OLED to get a bigger share of the premium TV and smartphone market.
The company shipped 2.9 million units of large OLED panels last year, which accounted for over 20 per cent of its total sales, turning to a surplus for the first time in five years since the panels’ launch. LG Display expected the sales ratio to exceed 30 per cent this year. Market researcher IHS Markit predicted sales of OLED TVs will rise from 5.5 million in 2020 to 10 million in 2022.
(Written with IANS inputs)