LG Display has told Business Korea that the reported plan to split production at the P10 plant in Paju is likely to be changed to mean that only OLEDs will be made there. A final vote is shortly to be made and at that time a decision will be made about the percentage of the capacity that will be used for large OLEDs for TV and how much will be dedicated to small and medium panels. Initial production will be in small and medium sizes.
The paper quotes analysts as saying that a G8.5 for TV is likely to be the first fab size, with a move to G10 sizes later.
Analyst Comment
This is not an easy decision for anyone and I’d still treat this news with caution. Even after the vote, I’d be nervous until the equipment orders have been placed.
There are higher risks in going fully for OLED, with making some LCDs a safer option. There will be plenty of demand for LCD TVs in the future and LG DIsplay is very good at making them, so the only real risk is a lack of profitability. On the other hand, making big OLEDs has been a very tough challenge and means doing things that have never been done before.
We have also seen reports that Samsung is trying hard to persuade Apple to stick with Samsung as a major display provider in the longer term.
