LG Display is going to invest additional $2.6 billion (3 trillion won) in 10.5th generation OLEDs at its P10 plant in Paju. Through this investment, LG Display is planning to accelerate conversion of its TV business structure with OLED at the center and lead OLED trend.
The investment is interpreted as an attempt to expand the large OLED production infrastructure more aggressively as demand for OLEDs increases significantly and awareness of the premium value of OLEDs spreads, increasing opportunities for the new market.
LG Display's 10.5th generation production line is mass-producing 30,000 65-inch or larger OLED panels per month and is planning to mass-produce 15,000 expansion panels per month starting from first half of 2023.
In November 2015, LG Display launched an investment of 1.84 trillion won for the construction of a new P10 plant and some facilities. In July 2017, it invested 2.8 trillion won with a goal of producing 30,000 sheets per month. This time, the company plans to invest an additional $2.6 billion to secure facilities capable of producing 15,000 sheets per month.
If 10.5th generation OLED production base is secured, it is likely that LG Display will become more competitive in super-large TV markets. The company is expected to produce differentiated products such as wallpaper, CSO and rollable as well as competitiveness in the existing TV market, contributing to the creation of the new market.
Starting with LG Electronics in 2013, there are 15 companies that sell OLED TVs, including Sony, Toshiba, Panasonic, Philips, Grundic, Mets, Vestel, and Bang & Ollupson and it is expected that many companies will join in the near future.
Sales of large OLED panels, which stood at just 200,000 units in 2013, surpassed 2.9 million units in 2018, and are expected to reach 3.8 million units in 2019. Market researcher IHS forecast sales to rise from 7.7 million units in 2021 to 10 million units in 2022.
If LG Display, which is the only company in the world that produces OLED TV panels, increases its production capacity of panels, it is expected that OLED TV shares will also increase in global TV markets. IHS is predicting that percentage of sales of OLED TVs in global TV markets will increase from 5.7% last year to 10.4% in 2023.