LG Display plans to invest US$13.5 bil to boost OLED production

Alain Brian
Juillet 25, 2017

The plans, which came in tandem with an 18-fold jump in second-quarter profit, includes a firm commitment to spend 7.8 trillion won ($7 billion) domestically by 2019.

Of the earmarked amount, 2.8 trillion won will be spent on the 10.5-generation OLED panel production line, while 5 trillion won will be allocated for the mid-sized Plastic OLED products, LG Display said.

"The customer base for OLED TVs and signage displays is expanding, alongside rapidly increasing OLED demand from the mobile and automotive markets", LG Display said in a statement.

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.

Considering the huge initial investments for mobile OLED, sources say the display maker may have made a decision to reduce costs for production of OLED TV panels.

According to industry sources, Apple and Google are reportedly to invest around 3 trillion won and 1 trillion won each in LG Display for developing some of its key OLED facilities, including evaporation equipment. This capacity is enough to produce 120 million 6-inch smartphone displays per year.

Shares of LG Display closed at 32,800 won Tuesday, down 1.35 percent from the previous session. Operating profit climbed sharply to 804.2 billion won in the April-June period from an operating income of 44.3 billion won in the same period a year earlier. The earnings results were announced after the market closed.

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