LG Display confirms to Reuters and Yonhap that it will end LCD TV panel production in South Korea by the end of 2020. It is shifting LCD production to China and doubling its output of OLED TVs.
After a year of heavy losses
LG Display's operating losses for 2019 are likely to exceed 1 trillion Won as a result of fierce LCD competition from China and falling LCD prices. The company currently operates two LCD TV panel factories, one in South Korea and one in China.
At CES 2020, LG Display confirmed to multiple media outlets that it will end domestic LCD TV panel production by the end of 2020.
- "We will be wrapping up our LCD TV production in South Korea by end of this year and focusing on our LCD TV production in China," CEO Jeong Ho-young told Reuters.
LG Display is switching its attention to LCD TV production in China as well as OLED TV panels made in South Korea and China.
Samsung Display also recently announced a $11 billion investment plan to convert existing LCD TV lines in South Korea into production facilities for next-generation display technology such as QD-OLED over the next 5-6 years. The company has since confirmed that it has already suspended one of its LCD TV production lines in South Korea.
OLED production to double in 2020
LG Display told Korea's Yonhap news agency that although its new OLED TV factory in China has seen some delays, it is expected to start mass production this quarter. The company expects OLED TV panel production to double this year.
- "We aim to sell at least 6 million OLED panels for TVs this year, which is double what we sold in 2019," he told Yonhap.
OLED TV sales are expected to make up 20 percent of the total TV market this year in terms of sales value, according to the CEO. He expects that figure to approach 30 percent in the next 2-3 years as more TV manufacturers launch OLED TVs.
- "Our customers are expanding their OLED products and we're also seeing that our competitors expanding their OLED investment plans," he said. "OLEDs are expected to make up 20 percent of the total TV market this year in terms of sales value, and their presence could increase up to 30 percent in the next two or three years."
At CES 2020, brands such as Vizio, Konka, and Skyworth have announced plans to launch OLED TVs in the US. Huawei and OnePlus will also launch OLED TVs this year.