LG Display's 8.5th generation OLED plant in Guangzhou, China, will start operation in August. According to the Industry sources on July 8, LG Display has been pushing for large-size OLED that will increase the percentage of OLED panels in TVs in this year's business direction, and it is predicted that this strategy will speed up when OLEDs are produced in full-scale at its Guangzhou plant.
The Guangzhou plant is LG Display's next-generation overseas plant that has invested more than 5 trillion won since 2017. LG Display is planning to produce 60,000 OLED panels per month in the first stage of its OLED plant in Guangzhou and increase its production volume up to 90,000 sheets per month depending on future market conditions.
If production volume of 70,000 sheets per month is added to the plant in Paju, output will increase up to 160,000 sheets per month. LG Display shipped 1.78 million OLED panels for TVs in 2017, 2.95 million in 2018 and 750,000 in the first quarter of 2019, with the operation of its Guangzhou plant expected to allow the delivery of a total of 3.8 million OLED panels for TVs this year.
The company is planning to compete with Chinese businesses by increasing percentage of OLEDs that have relatively high potential for growth and added value at a time when Chinese businesses are making low-priced attacks on LCD panels.
LG Display estimates that 70% of its sales this year are from LCD. Its goal is to increase percentage of OLEDs and incubation businesses (commercial and automotive panels) to more than 50% of its entire businesses by 2020.
Industries predict that supply of global OLED TV panels will quickly expand if mass-production of the OLED plant in Guangzhou is stabilized at an early date. It is expected that its Guangzhou plant will also contribute to improving profitability of OLEDs.