LG Display will be focusing its investment on organic light-emitting diode displays (OLED). The company reportedly plans to place at least $8.47 billion, or 10 Trillion won principally on OLED displays for products such as television and flexible screens for smartphones though 2018.
So what made LG Display decide to do this?
The company considers OLED as the next-generation technology and wanted to get ahead of the competition, Reuters reported. The world's top Liquid Crystal Display (LCD) maker is hoping that an early investment in OLEDs will aid its dominance when the technology becomes ubiquitous.
In July, the South Korean display maker made an announcement of investing $908 million, or 1.05 trillion won in the 6th generation flexible OLED through the new E5 line, ZD Net learned. Manufactured in Gyeongbuk Province, South Korea, this new line will start its mass production in the first half of 2017.
It is too expensive to mass produce OLED, that's why other companies are reluctant about the idea. However, if LG Display manages to lower the cost down and still generate a profit, the company might ensure a success in the market.
As part of the company's goal implementation, Korean Times found out that it plans to collaborate with the government to boost the OLED market. The company also plans to expand its OLED line up by investing in business-to-business solutions, like digital signage.
Another reason identified why the company redirected its investment in OLEDs was the decrease of LCD demand in the market.
"LCD was the main driver in the industry in the past. However, industry growth is flattening," Han Sang-beom, LG Display CEO, said to the participants during the company's 20th anniversary celebration in Paju.
"Threats from China are urging the country to find something new," he added. "I believe OLEDs are the right solution to help the country lead its rivals in the battle for next-generation displays."
LG Display said, in a statement, that the shift will generate 130,000 jobs and spark 35.5 trillion won worth of production, creating a positive economic ripple effect.
