LG Display's production cost of a 48-inch OLED panel at its China plant is 13-14% lower than that at the Korean plant. A 65-inch panel will soon reach similar levels, according to industry estimates.
Cheaper OLED TVs
Prices of OLED TVs have dropped to more attainable levels due to a number of factors. One of the more important factors is LG's second OLED TV factory that opened in 2020 in Guangzhou, China.
- "According to DSCC, Guangzhou plant’s production cost was higher than that of the Paju plant until 2020. But LG Display lowered the total cost at the Guangzhou plant by lowering depreciation expenses, labor costs, overhead costs and sales management expenses. In particular, in the case of 48-inch products, their production cost in China is estimated to be 13 to 14 percent lower than that in Korea. DSCC also predicted that 65-inch products will also show similar price competitiveness," BusinessKorea reported.
The Guangzhou plant utilizes MMG (multi-model glass) production, which can cut different sizes of OLED panels from the same 8.5G mother substrate to further reduce production costs. It has also enabled LG Display to start mass production of 48- and 83-inch panels – and possibly 97-inch OLED next year.
LG Display's OLED factory in Guangzhou, China. Photo: Company
LG Display is the supplier of all OLED panels to all TV brands including LG Electronics, Philips, Panasonic, Sony, and Vizio.
The company has previously said that its China plant "boasts high efficiency and productivity, which makes it more advantageous for the production of extra-large and high value-added OLED panels".
OLED TV panel production is expected to nearly double from 4.4 million in 2020 to 7 million in 2021, according to DSCC.
- Source: DSCC via BusinessKorea
