LG Display’s hold on the medium-and-small sized OLED sector is still nascent even though it is the world’s sole supplier of large-size OLED panels for TVs
South Korean conglomerate LG Group’s LG Display announced that it will invest 3.3 trillion won ($2.8 billion) to expand its medium-and-small sized OLED display production capacity.
Adding that the investments will be made through March 2024, the company said it will be used in OLED facilities in South Korea that manufacture sixth-generation (1,500mm x 1,850mm) substrates and the facility is expected to begin operations in 2024.
LG Display’s hold on the medium-and-small sized OLED sector is still nascent even though it is the world’s sole supplier of large-size OLED panels for TVs.
In the smartphone OLED panel, LG Display had a 10.6 percent revenue share in the first quarter of the year, far behind Samsung Display Co.’s 73.7 percent share, according to market researcher DSCC, reports Yonhap news agency.
Industry observers said the investment is expected to help LG Display to produce 60,000 medium-and-small sized OLED sheets per month at its plant in Paju, north of Seoul.
LG Display reported 6.96 trillion won in sales and 701.1 billion won in operating profit in the second quarter of the year.
In a conference call last month, the company said it is reviewing a plan to expand the capacity of its plastic OLED panels.
Analysts said LG Display’s strategy of efficient OLED production expansion by achieving economies of scale added to its better-than-expected operating profit in the second quarter to 701 billion won ($607 million).