LG Gives OLED Panel Production $655M Shot in the Arm

It was pretty evident from this year's International CES that OLED TVs, alongside 4K UHD, could get their first big break in 2013. The who's-who of the television set industry had an OLED TV to show off. Not many of those companies manufacture all components. The panel itself, for example, is sourced from one of few manufacturers that have developed the technology over the past decade, one of which is LG Display.

To keep up with near-future orders for its 8th generation OLED TV panels, LG announced a KRW 706 billion (US $655 million) shot in the arm for its P9 display panel plant located in Paju, South Korea. The investment will add a new production line to the plant, which specializes in WRGB OLED panel evaporation process. Construction and testing of the line will begin in Q1 FY2013, and if everything checks out, mass-production could follow in the first half of 2014, with a monthly capacity of 26,000 input sheets.

LG's own market research predicts that OLED televisions could see dramatic market growth in 2014, and could create a US $3 billion market by 2015.

Seoul, Korea (February 18, 2013) - LG Display [NYSE: LPL, KRX: 034220], a leading innovator of display technology, announced today that it has decided to invest KRW 706 billion in a new 8th generation OLED TV panel manufacturing line (2,200mm×2,500mm), to be installed at its P9 plant in Paju, South Korea.

The company plans to begin investment in the line, which will focus on WRGB OLED evaporation process, in the first quarter of 2013, with mass production scheduled for the first half of 2014 at a monthly capacity of 26,000 input sheets.

Leadership in OLED Technology
With introduction of the world's first 55-inch OLED TV in January 2013, LG Display has demonstrated its position as a pioneer of the OLED TV era. The company moves a step ahead in the emerging OLED TV market through new investments with a strategy of providing differentiated value to customers.

Additionally, LG Display's adoption of WRGB OLED technology addresses limitations inherent with large-sized OLED, such as productivity and lifespan issues.

Market Forecast
According to forecasts by research firm DisplaySearch, the OLED TV market will experience dramatic growth starting in 2014 to become a USD 3 billion market by 2015.