LG Display recorded an operating profit of 804 billion won ($720 million) in Q2 2017, however, once again the company’s performance in the second quarter was 22 percent weaker than in Q1 2017 when the firm registered an operating profit of 1.027 trillion won ($91.7 million). Considering the huge initial investments for mobile OLED, sources say the display maker may have chose to reduce costs for production of OLED TV panels. “This investment will give LG Display a new opportunity to leap forward”, said LG Display Chief Executive Han Sang-beom. The company said it will continue to tap deeper into various areas of the OLED panel industry.
South Korea’s LG Display Co Ltd outlined plans to invest US$13.5 billion to boost production of organic light-emitting diode (OLED) screens over the next three years, aiming to ride surging demand for the flexible panels from TV and smartphone manufacturers. Other Chinese tech giants, Huawei, Xiaomi, Oppo and Vivo are also following suit by adopting OLED panels for their new phones.
LG Display Co Ltd 034220.KS outlined plans to invest $13.5 billion to boost output of organic light-emitting diode (OLED) screens over the next three years, aiming to cement its lead in big panels for TVs and make inroads against rival Samsung in smartphone displays.
With its increased production capability of OLED for smartphones, LG is hoping to become the second OLED display supplier for Apple’s iPhones.
The display maker said in the regulatory filing that the investment will be aimed at producing various sizes of OLED panels for different needs.
LG Display said it would not comment on client companies. Additionally, the company experienced a year-on-year turnaround from Q2 2016 when it registered a net loss of 84 billion won ($75 million).
The new China production facilities will be established through a joint venture with 2.6 trillion won in capital, of which LG Display will hold a 70 percent share. The earnings results were announced after the market closed.