According to Korean media reports, as LCD (liquid crystal display) prices continue to decline, resulting in weaker LCD business profitability, South Korea's LG Display is accelerating the transition from LCD panels to OLED panels.
Data show that LG Display's OLED sales this year is expected to account for only 17% of its total sales. The company has suffered losses for two consecutive quarters, and LG Display has been restructuring its LCD business recently.
It is expected that from the beginning of the year, with the rapid growth of OLED sales, the company's profitability will increase. LG Display plans to close its LCD production line and expand OLED production. Its 8.5-generation OLED fab in Guangzhou, China, began mass production of OLED panels in August.
In July of this year, the company also announced a plan to invest an additional 3 trillion won (about 17.943 billion yuan) in the 10.5-generation OLED production line in Paju. Therefore, LG Display is expected to increase its OLED share to 29% in its total sales, and it is expected that annual sales will exceed LCD panels.
According to market analysts, from the fourth quarter of this year, the price of LCD panels will not fall further and stabilize. Due to seasonal factors and the impact of the Tokyo Olympics, it will show an upward trend from the second quarter of 2020.
In addition to LG Display, Samsung Display will also shut down the LCD business and focus on the OLED business.
Samsung Display said in August this year that it will suspend its LCD production line in South Korea due to oversupply in the market. The company currently has two LCD production lines in Korea and one in China. The company announced that it plans to invest 13.1 trillion won (about 11 billion US dollars) in facilities and research over the next five years. The focus of this $11 billion investment is to transform an LCD production line in Korea into a more advanced "quantum dot." "Screen facilities to cope with the severe oversupply caused by weak demand for smartphones and TVs worldwide.