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LG Display finishes the Chinese $4.2 billion OLED plant

LG constructed the Guangzhou plant for the manufacturing of sheets sized over 55 inches of organic light-emitting diode (OLED), revealed a Yonhap news agency.

SNS | New Delhi |

On Friday, LG Display Company said it had finished the building of its $4.2-billion OLED plant in China to begin mass production of a premium big-screen television.

LG constructed the Guangzhou plant for the manufacturing of sheets sized over 55 inches of organic light-emitting diode (OLED), revealed a Yonhap news agency.

The firm said that in the original phase it intends to roll out 60,000 OLED sheets per month at the plant, which would boost its complete monthly OLED sheet output ability to 130,000 units this year when coupled with its production line at its South Korean plant in Paju, north of Seoul.

The panel manufacturer said by 2022 it will ramp up the two factories ‘ monthly output to over 10 million.

The company has expanded its investment in OLED boards to move from traditional liquid crystal display (LCD) displays, partially from Chinese manufacturers, plagued by declining demand and supply glut.

Due to small LCD screen rates and poor worldwide demand, LG Display experienced a working loss of 368.7 billion earned in the second half.
According to WitsView, a TrendForce subsidiary, the median cost of the company’s 50-inch LCDs for TVs fell 7.5 per cent year-on-year in the second semester. LG Display has promised to accelerate this year’s shift from LCD to OLED to gain a larger share of the premium smartphone and TV market.

Last year, the firm delivered 2.9 million units of big OLED boards, representing more than 20 per cent of its total sales, converting into a surplus for the first time in five years since the release of the launch. LG Display anticipated this year’s revenue percentage to reach 30 per cent.

Market investigator IHS Markit forecast OLED TV revenues to grow from 5.5 million in 2020 to 10 million in 2022.