The hottest LGD gambled heavily on whether OLED pa

2022-08-23
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Can LGD spend a lot of money on OLED panels to seize the initiative in the market

On July 10, LG display, a display panel manufacturer under LG, announced that the Chinese government had approved its plan to build a new OLED panel manufacturing plant in China. LG display said that the new plant will be built through a joint venture with a registered capital of 2.6 trillion won (about 2.33 billion US dollars), in which LG display holds 70% of the shares

Lgdisplay said in a statement that the new factory in Guangzhou is expected to start mass production in the second half of next year, when its monthly output of large-size OLED panels will increase from the current 60000 to 130000. It is larger than the 70000 piece monthly production capacity of E3 and E4 plants in poju, South Korea. It mainly produces OLED panels for 55-77 inch TV with overcurrent, overvoltage, overload and other protection installations. This generation 8.5 OLED production line is the third production line established by LG display in Guangzhou after the module factory and LCD production line

In July last year, LGD announced its plan to produce OLED panels in Guangzhou, hoping to save labor costs and meet the demand of overseas markets for OLED TV screens. However, due to doubts about technology outflow, the plan was reviewed by the Korean government for a long time

however, under the active expansion of production capacity of panel manufacturers such as BOE and csot, the South Korean government is feeling pressure. In December last year, the South Korean government approved LG display, a board subsidiary of the South Korean LG Group, to produce OLED panel plants with different thicknesses of foam in Chinese Mainland. This is the first time that the South Korean government has approved the transfer of OLED panel technology overseas

now, LGD has finally obtained the approval of the Chinese government to build an OLED panel factory in Guangzhou. It can be said that good things happen over time

lg display CEO Han Xiangfan said, "the newly built 8.5 generation OLED panel production line will contribute to further promoting the OLED upstream and downstream industry chain to take root in China and help the development of China's OLED industry. In the future, LG display will continue to work with Chinese partners to promote the innovation and development of OLED technology and create leading differentiated display products"

behind the increased OLED capacity

at present, intelligence is turning to OLED screens, and larger TVs are also using OLED screens

compared with LCD, OLED is a self luminous display without backlight and liquid crystal. Because the material is lighter and thinner, OLED can realize diversified design, and its perfect black and more accurate color performance also ensure its perfect image quality in display. In the field of TV panels with fierce innovation, OLED has given more possibilities to modern TVs, such as wallpaper TVs and self generating TVs. Based on the above advantages, OLED panels are also favored by TV manufacturers. At present, the OLED camp has expanded to 14 in the world, including major Chinese mainstream TV enterprises such as Hisense, Skyworth, Changhong, Konka, etc

with the participation of multiple brands, the OLED camp is no longer weak. It is reminiscent of the development trend of the LCD camp. In the competition with PDP (plasma display) technology, the important reason why LCD products can win is the expansion of the camp. The expansion of cAMP production makes the price of products more advantageous. Therefore, the gradual formation of OLED camp basically paved the way for the development of OLED TV

according to the report of IHS Markit, the global TV shipment in the first quarter of this year was 50.6 million units, an increase of 7.9% year on year. Among the TV shipments in the first quarter, LCD TV still firmly occupied the leading position. Its shipments in the first quarter were 50.1 million units, accounting for 99% of the total shipments, and the shipments increased by 7.5% compared with the same period last year

although the shipment of LCD TVs in the first quarter increased by 7.5% year-on-year, IHS Markit's report shows that throughout 2017, the shipment of LCD TVs fell by 3.6% year-on-year. The increase in the shipment in the first quarter of this year is due to the decline in the price of LCD panels at the end of last year and the beginning of this year. The upcoming World Cup also led to an increase in the demand for TVs in emerging markets, especially Latin America, which has plug and play functionality, Led to the increase of LCD TV shipments

compared with LCD TVs, OLED TVs' shipments in the first quarter of this year were at a disadvantage, but their growth was unusually significant. According to IHS Markit's report, OLED TVs' shipments in the first quarter of this year were about 470000 units, an increase of 115.8% year-on-year. According to IHS Markit's analysis, the overall OLED TV shipment is expected to rise from 1.5 million units in 2017 to 2.4 million units in 2018. AMOLED TV panel shipments will continue to grow at a compound annual growth rate of 42% from 2017, and will exceed 10million pieces by 2023. It can be seen that OLED TV has broad market prospects

in November last year, Li Tinghan, the executive director of LGD, said that the OLED panel output of LGD in that year could probably meet 1.7 million TVs, accounting for less than 1% of the TV demand in the global market. It can be seen that at present, the resources of OLED panels are very limited, which is far from the capacity of the whole market

with the growth of market demand for large-size OLED TVs, a large-size OLED factory will be built in Guangzhou to further consolidate its market position

bet heavily on OLED, whether LGD can regain the market initiative

under the background of weak LCD supply, LGD's operating income has been in a state of loss in recent years. In order to reverse the market disadvantage, LGD had to bet on OLED. It can be seen that this investment is of great importance to LGD

however, compared with LGD's big bet in OLED large-size panel field, how do other domestic panel manufacturers react

in May this year, TCL Group announced to invest in the construction of a production line with a monthly processing capacity of 3370mm in Guangming New Area, Shenzhen × The 11th generation ultra high definition new display device production line (T7 project) with about 90000 2940mm glass substrates mainly produces and sells 65, 70, 75 inch 8K ultra high definition liquid crystal (LCD) displays and 65, 75 inch OLED displays. The total investment of the project is about 42.683 billion yuan. The project is jointly invested by TCL group, China Star optoelectronics and Shenzhen major industrial development fund. It is planned to officially realize mass production in March 2021

in addition, although BOE previously said in its interaction with investors that "large-size OLED technology needs to be improved and will not invest for the time being", as BOE matures in small and medium-sized OLED technology, it is bound to enter the field of large-size OLED panels. At present, BOE also has the basic conditions to verify the large-scale OLED mass production technology on the 10.5 generation online

at present, domestic panel enterprises such as BOE and csot have just gained some advantages in the LCD panel field, a city that used to be solely supported by coal mining. Their strategy is to thoroughly understand the advantages of LCD and wait until OLED technology is more mature. It can be seen that for LGD, opportunities and challenges coexist

as the big brother in the LCD era, LGD established a production line in Guangzhou to achieve overtaking in corners through OLED panels and establish its own advantages. Can OLED regain the market initiative this time? We'll see

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