The Chief Executive Officer of LG Display said this week that the company is considering converting its remaining LCD TV display production lines to manufacture OLED TV panels instead.
Speaking at a Korea Display Industry Association event, Jeong Ho-young said that it will take some time for the company to decide when it should shift its LCD lines to OLED production.
The CEO explained that LG Display has two choices, as the lines can be converted to manufacture either OLED TV panels or OLED-based monitors. So the company has to consider which option makes the most sense, given the current economic climate.
LG Display announced in July during an earnings call that it was looking to downsize its remaining LCD production lines, as the company has limited ability to differentiate these products from its competitors’ displays.
Prior to that announcement, LG Display said in May that it was accelerating its plans to curtail LCD production completely amid growing competition from Chinese firms. It plans to bring LCD display production to a complete stop sometime in 2023.
The company currently still manufactures LCD TV displays at its P7 production line in Paju, South Korea, having already shut down all other LCD production operations.
Sources have told The Elec that LG Display will most likely convert this line to manufacture OLED TV panels instead, at some point in future.
Speaking about LG Display’s outlook for the second half of the year, Jeong said the company faces an “adjustment period” due to unfavourable economic conditions. He admitted the company will ensure a difficult third quarter, before the situation improves in the final quarter of the year.
Jeong also addressed questions about the supposedly high level of LCD inventory among panel makers. He explained this is due to factory closures in China resulting from COVID-19 outbreaks there, and that it is just a “temporary problem”. LG Display believes the situation will normalise by the end of the year, Jeong added.
LG Display’s eternal rival, Samsung Display, has already announced plans to cease LCD display production completely by the end of the year.
