LG Display is expected to place an order for the 8.5 generation Organic Light Emitting Diode (OLED) equipment next month from Guangzhou, China, estimated at 3.17 billion dollars. Chinese authorities are expected to pass the investment antitrust review of Guangzhou joint-venture corporation next month, and barring any major issues, regular equipment orders will start from the end of next month.
According to industry sources on April 24th, LG Display is in discussions pertaining to quantity and specifications of the products with major equipment suppliers in order to officially order the 8.5 generation OLED equipment from Guangzhou.
“We are conducting last-minute coordinations with LG Display to exchange contract wording for a formal order,” said an official with the equipment company.
In order for LG Display to begin formal investment, the joint venture with the local Guangzhou government must pass an antitrust review by the Chinese authorities. The decision to establish the joint venture with the Guangzhou provincial government has yet to be finalized because the antitrust review has not yet been completed.
The Guangzhou plant, which is about to be officially invested in, will have a monthly production capacity of 60,000 sheets of glass substrate. The industry expects to invest about 3.17 billion dollars in facilities, excluding building investment.
The company plans to order 60,000 units a month, and also divide the equipment into two stages, and bring it into service this year and early next year. Operations are scheduled for the second half of next year.
LG Display plans to rapidly increase the volume of OLED TV panels by stabilizing Guangzhou 8.5 generation OLED fabs as quickly as possible. LG Electronics and Sony, as well as Chinese TV makers, are planning to increase supply to meet the demand shortage and increase earnings.