LG.Display has received the necessary approval in Korea and China to set up an 8.5G OLED plant in China, reports Yonhap. It will almost double OLED TV production and is expected to reduce costs.
Will double OLED TV production
LG.Display – LG’s display manufacturing division – received Korean approval in December 2017 after the government had debated whether to allow the Korean company to set up its first production facility in China. It has now also received the necessary approval in China.
The new plant in China will almost double LG.Display’s output from the current 70000 substrates per month to 130000 substrates in the second half of 2019 when the plant is expected to start mass production. The new plant will eventually reach a capacity of 90000 substrates per month. Each substrate can be cut into several smaller OLED TV panels. The company said that it will enable it to "ship up to 10 million 55-inch OLED TV panels on a yearly basis."
- "As the OLED panels hold a high technology barrier, companies outside of South Korea are currently facing troubles in mass production," the company said. "Through the establishment of the Guangzhou OLED production line, we aim to further extend our lead over rivals."
LG.Display is currently the only company that can mass-produce OLED TV panels.
The Chinese plant is a so-called 8.5G (generation) production facility, which is the same as the company’s current production facility in South Korea. It is expected to reduce production costs partly due to lower wages in China. LG.Display will invest around $4.5 billion US dollars together with local partner Guangzhou Development District.
LG.Display is also currently setting up a 10.5G plant that can produce larger and more advanced OLED TVs.