LG Display confirmed its aim to continue to move to OLED by focusing its investments in 2017. The company said that it had had a ‘better than expected’ reception for wallpaper TV and commercial signage based on OLED. The company wants to widen its customer base this year as it has restricted capacity. In its investor call, it said that it is in detailed planning for its Capex this year, but did confirm that 70% of its investment in 2017 will go into OLED.
Large TV and plastic OLEDs will be the focus of investment and the CFO, Sang-Don Kim said that the shift to plastic OLED is irreversible, but the company will retain some LTPS LCD capacity. Kim did highlight that the huge investments needed for OLED capacity will mean that it will remain conservative in that its investments will be based on clear customers’ commitments.
On large OLEDs, Kim said that EBITDA for OLEDs would arrive in 2017 with EBIT surplus in 2019. In terms of volume, TV OLED panels will be at around 300,000 per quarter, with 500,000 in the second half.
