The CEO of LG Display reports during a press conference at CES that his company has set the goal of supplying six million OLED panels for televisions this year. This would be double the number the company delivered in 2019, according to the CEO.
Jeong Ho-young indicates that LG Display is in a difficult situation due to last year’s operating losses, which totaled more than 770 million euros. This is related to the fierce competition in the LCD market, which mainly comes from China, which puts considerable pressure on LCD panel prices. There are also major investments in the production capacity of OLED panels. In the past three years, LG Display has invested about 17 billion euros in setting up and upgrading its factories, but according to the CEO, the investment amount will not be very high this year and will come to more than 2 billion euros.
According to the CEO who took office in September, the figures will improve once the new factory for large OLED panels in Guangzhou, China, starts operations, Yonhap writes. Mass production at this factory should have started last year, but there were some delays, according to the CEO. According to him, these have to do with increasing the yield rate. He says mass production at the Chinese factory will start no later than the first quarter of this year. According to Jeong Ho-young, OLED panels will account for 20 percent of the total TV market this year, which could grow to 30 percent in the next two to three years, he thinks.
During the press conference, the CEO also indicated that LG Display will stop producing LCD panels in South Korea after this year. The company has two factories for these panels: one in South Korea and one in China. The Chinese factory will still continue to produce LCD panels. According to the CEO, the factory in South Korea will not be modified and used for the production of OLED panels.