In 2019, LG Display was preparing for the installation of new production lines for 6th generation OLEDs in Paju, with plans to increase production capacity to more than 700,000 sheets per year. The company had already confirmed an investment plan worth 3.3 trillion won ($2.5 million) to expand small and medium-sized OLEDs and was ordering additional Japanese Canon Tokki exposure machines to support the expansion. The expansion plans were driven in part by the need to supply panels for Apple.
However, now, according to reports from Korean news services, LG Display has announced a delay in its investment in a large OLED production facility to March 2028 due to sluggish market demand resulting from general global economic slump and the increased uncertainty around macroeconomic conditions. Despite the delay, LG Display still plans to make a significant investment of 3 trillion won ($2.4 billion) in a 10.5G OLED panel production line at its P10 plant in Paju, as originally announced. Once completed, the facility is expected to increase its monthly production capacity by 15,000 units.
LG Display’s ambitious plans to expand its OLED production capacity were to meet the demands of a growing market, but these plans are being delayed due to external economic factors beyond the company’s control. LG still plans to invest in OLED production in the long term, and the company remains a significant player in the industry. The only question is, where does this fit into the short-term strategy for LG. The company has competition from Chinese manufacturers on OLED and pricing pressures on LCD. It is spread thinly compared to its local rival, Samsung, by virtue of not being as well-funded to maintain an aggressive posture.
