LG Display, the world’s largest display-maker by sales, has invested more than 14 trillion won into the Gumi plant since 1995.
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The new line will produce more than 200 cuts 5.5-inch cuts from a single plastic substrate sheet. The flat panel maker unveiled Thursday a plan to build a new factory for the flexible OLED production by 2017.
In its earnings statement later on Thursday, LG Display said it would improve cost competitiveness in OLED by converting some large-LCD production capacity for OLED in the second half, and increase advertising to grow the market.
The fresh investment into flexible OLED is expected to pave the way for the company to lead future markets for foldable display and its adoption on smartphones, wearable devices and automotive displays.
“It is very likely that the first flexible iPhone may be introduced in 2018, as Apple’s top-tier display suppliers are working on it, ” claimed Korean media sources last month, and that might be one of the reasons behind LG’s near-$1 billion investment.
Apple was said to be actively exploring flexible OLED screen panels for future iPhones, and LG might look to ensure it would be able to ramp up capacity when the time came.
In addition, LG Display signed a MOU on OLED investment and administrative support with the Gyeongbuk Province and Gumi City governments on July 23, with the company having been promised to receive administrative service support from the local authorities.
LG Display reported operating profit of 488 billion won for the second quarter, beating the 469 billion won average estimate of 31 analysts in a Thomson Reuters I/B/E/S survey.
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The additional investment of KRW1.05 trillion in the flexible OLED line is expected to create jobs and promote regional economic growth by creating synergies between the production of LCD and OLED displays.
