There have been a number of reports that LG Display is unsure about how to use the P10 G10.5 fab in Paju (LGD Confirms Plans for Large OLED Factory), which is intended to allow the development of large OLEDs, but could also be used to make LCDs.
The company will use part of the capacity for making flexible OLEDs but a spokesperson told Business Korea that it will probably make a decision later this year about the proportion of the remaining capacity that will be used for OLEDs and LCD. Earlier reports had suggested that the company might make just large LCDs alongside flexible OLEDs.
Analyst Comment
It looks as though LG Display may make a combination of LCD and OLEDs in the fab. One of the issues for LG is that its current large OLED fab is inefficient for 65″ and larger OLEDs, so LG needs a bigger fab, but it has taken a long time to ramp up yields on its FullHD and then the UltraHD OLEDs. On the other hand, it should be able to ramp up a new LCD fab relatively quickly, even though it would be the firm’s G10.
It would seem, therefore a logical plan to install some LCD capacity that can earn money from the fab while the OLED process is ramping up. At the moment, the largest fab that LG has for making LCDs is a G8, which is optimised for 55″. However, as will be clear when we publish our report on the SID Business conference, there are a lot in the LCD and TV business who believe that 65″ will become much more of a mainstream size. A G10.5 like the new one would be able to make them very efficiently.
If OLED demand remains strong, then once the process is settled and some depreciation has been absorbed on the LCD plant, it could re-purpose the line. LG, of course, uses filters in its OLEDs, (BR)
LG display cluster – Image:LG Display
