Once again, LG Display has delayed starting work on its planned new 10.5 G OLED manufacturing plant in China, which is intended to mass produce cheaper and larger TV panels.
The Korean display manufacturer first announced its plans to construct the new plant back in 2017, saying the facility would be used to produce large-sized LCD displays and OLED panels for televisions. Later, as the COVID-19 pandemic hit the world and LCD display prices plummeted, LG announced that the new facility would focus exclusively on OLED panel production, and promptly postponed the beginning of construction.
LG Display currently operates two 8.5G factories, one in South Korea and one in China. The proposed 10.5G plant would enable it to produce large-sized OLED panels more cheaply, and also extend the size of those products beyond 97-inches, which is currently the largest it produces.
However, with consumer demand for televisions waning due to a slowing economy, LG Display has once again decided to push back the opening date of its new factory.
The company told Flatpanels HD that the new factory will improve production efficiency and allow it to “explore new markets with its super-sized OLED panels”.
However, the company stated that the market environment has “changed significantly” as a result of macroeconomic uncertainties. “These circumstances have created an environment in which it is difficult to carry out planned investments on schedule,” the company told Flatpanels HD.
According to various reports in South Korea, LG Display is now looking at a new opening date of 2028 for its 10.5G factory. The company did not confirm this date to Flatpanels HD, however. It may be that the company ultimately opens the new plant sooner than that, with a lower production capacity. Such a plan makes sense, as display panel makers often carry out investments in new factories in phases.
“The investment deadline will be extended and related details will be re-disclosed in the event of future changes," LG Display said.
It’s not clear if LG Display’s current product roadmap will be affected. Earlier this month, internal company documents leaked to TFTCentral revealed that LG Display is looking to expand its presence in the monitor market with the launch of various new panels, including a 34-inch ultrawide curved OLED display with a 240Hz refresh rate that’s set to launch in 2024. It will also launch a 39-inch bendable OLED display for monitors, and a standard 31.5-inch OLED panel, as well as a 42-inch product with the same specs. Other products on the roadmap include a 27-inch OLED monitor panel, and a 45-inch ultrawide OLED panel with a 165Hz refresh rate that’s slated to arrive in 2025.
As these products are all much smaller, LG Display’s existing 8.5 Gen OLED factories should be able to accommodate their production.
