LG Display to bolster OLED business

LG Display, the world’s top liquid crystal display maker, said that it would invest more in installing production lines for organic light-emitting diode panels, signaling a challenge to its biggest competitor Samsung Display.

At a meeting with reporters at the firm’s industrial complex in Paju on Monday, LG Display CEO Han Sang-beom said the firm would reinforce its OLED business, hinting that the firm was pondering the addition of OLED production lines at LCD factories now under construction in Guangzhou.

“In the long term, LG Display will put more priority on the OLED business than the LCD business,” CEO Han said. 

Currently, a 55-inch OLED TV panel ― priced at around $2,400 ― is six times more expensive than an LCD equivalent, which makes OLED TV less attractive to customers, according to market watchers.

The factory lines are scheduled to be completed by the end of next year.

Samsung avoided making any comment on LG’s plan, but said “we have heard the news,” implying it has kept a close eye on the latest developments of its rival.

“Samsung also expects the OELD technology will be dominant down the road, and it is gearing up for that,” said a Samsung Display official speaking on condition of anonymity.

Some industry watchers cast doubt on LG’s new OLED lines in China, since the lines require highly advanced technology and assembly lines, skilled technicians and developers, which all are considered to be scarce in China.

In order to take the lion’s share of the growing market, LG Electronics and Samsung Electronics unveiled new 55-inch and 66-inch OLED TVs this year.

“The releases of OLED TVs are more to imply they have a technological edge than to sell the products,” said Chun Young-hwan, an analyst from I’M Investment and Securities.

Low production yields are often identified as one of main stumbling blocks along with high costs.

“Although it is unclear when the OLED prices will come down to a satisfactory level, LG Display will increase investment in technology development to truly become a market leader,” the LG CEO said.

“I would say if FHD (full high-definition) and UHD (ultra high-definition) have changed the resolution of TV screens, OLED spawns a whole new era.”

By Kim Young-won (wone0102@heraldcorp.com)