LG Display to Invest 7.8 Trillion Won in OLED Production Line

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.

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Scott Hart

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4 Comments

  1. Recently for the first time I would consider an LG display only because I am not hearing about the failure issues that I have heard about in the past. I know LG gets great picture quality reviews and I have been interested in OLED technology. I am wondering how LG will compair to the new Sony OLED’s now that Sony is in the OLED game. I have noticed that LG is offering a Dolby Vision OLED which is not only interesting but something I could be interested when upgrade time arrives. I have seen good pictures on the LG’s and have seen the good reviews on picture quality. Have not heard to much good on the LG disc players though. In the past I would have said no way to an LG but I am now considering a LG OLED with Dobly Vision paired to a Oppo 4K UHD BD player that will replace my current Samsung 4K UHD player.

    Current TV: Samsung 4K UHD LED TV

    Current Considerations: 65″ – 77″ Screen Size
    LG
    Samsung
    Sony

    Dolby Vision is what may tip the scale for me and that might tip it towards LG OLED! Sorry I do not do TCL ,Insignia, Hisense, or Westinghouse.

  2. Dave Moritz

    Recently for the first time I would consider an LG display only because I am not hearing about the failure issues that I have heard about in the past. I know LG gets great picture quality reviews and I have been interested in OLED technology. I am wondering how LG will compair to the new Sony OLED's now that Sony is in the OLED game. I have noticed that LG is offering a Dolby Vision OLED which is not only interesting but something I could be interested when upgrade time arrives. I have seen good pictures on the LG's and have seen the good reviews on picture quality. Have not heard to much good on the LG disc players though. In the past I would have said no way to an LG but I am now considering a LG OLED with Dobly Vision paired to a Oppo 4K UHD BD player that will replace my current Samsung 4K UHD player.

    Current TV: Samsung 4K UHD LED TV

    Current Considerations: 65" – 77" Screen Size
    LG
    Samsung
    Sony

    Dolby Vision is what may tip the scale for me and that might tip it towards LG OLED! Sorry I do not do TCL ,Insignia, Hisense, or Westinghouse.

    Other than uniformity (LCD has this problem), OLED's have been very good the last two years. And LG has been friendly in replacing the models with uniformity issues.

    That being said, I have opted to move my 65" OLED to the other room in favor of a Sony X940E. I have had a 65" since 2009, time for a larger screen.

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