LG to start producing OLED TV panels in its Chinese factory amidst Korea-Japan trade war

8 Juli 2019, 11:18:50

LG to start producing OLED TV panels in its Chinese factory amidst Korea-Japan trade warAmidst the South Korea-Japan trade war, LG is looking for solutions to overcome Japan's export restrictions. It is expected that LG plants on home ground will suffer due to difficulties securing Japanese materials and parts. Business Korea reports that one such solution for LG is to start volume production of 8.5 Gen. OLED panels at its plant in Guangzhou, China. If this happens, LG's annual number of OLED panels will increase from 2.90 million units last year to 3.8 million units this year. This will also stimulate LG to focus more on OLED panels and gradually leave LCD panels behind. It expects the OLED panels to account for 30% of its TV panel sales and large-size OLED panel production to increase to 7 million units in 2020 and 10 million units in 2021.

In order to increase productivity, LG will probably use the multi-model glass (MMG) technology in its plant in Guangzhou, China. This tech allows panels to be cut into various sizes and minimizes discard. Currently, from one plate LG makes 3x 65" and 2x 77" OLED panels. With MMG, it will be able to make more and ultimately reduce production costs by 10-20%.

"Since the Chinese factory is procuring display parts locally, it is free from Japan's export regulations," an LG Display official said on July 7. "We are continuing a test operation of the Guangzhou plant because it is scheduled to start mass production in August. Since we have experience in producing 8th-generation products in factories in Korea, we will not have any problem in the operation of the Guangzhou factory. The operation of the Guangzhou plant will boost the production of glass substrates from 70,000 units per month to 130,000 to 160,000 units per month," the official said.Quelle

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