South Korea’s LG Display Co Ltd said on Monday it would focus investment on organic light-emitting diode (OLED) displays, betting on the next-generation technology to steer it clear of price wars and ahead of the competition.
Advertisement
A 55-inch OLED ultra-high definition curved TV made by LG Electronics was on sale for $4,999 on Amazon.com Inc’s (AMZN.O) U.S. shopping site, marked down from $5,499.99. LCD has more issues with brightness and power usage as resolution scales up, so LG might be anxious to make its OLED tech suitable for 4K resolutions (you know it’s happening) before it’s lapped again.
LG Display, world’s largest manufacturer and supplier of thin-film transistor liquid crystal display panels, OLEDs and flexible displays, stated that it will seek to expand OLED applications to signage and automobiles, and also allocate some of its spending to LCD products. The company expects to start mass production of the new line of displays in early 2017, at which point it will be able to pump out 7,500 sheets per month at its Gumi plant in Korea.
Since barriers to technology adoption and entry are high for the OLED panel industry, Korean companies have a competitive advantage in the market to the extent that LG Display and Samsung Display are the only companies that can mass-produce OLED panels at the moment.
“But there is still a gap in OLED”, CEO Han Sangbeom said at a news conference. The firm hoped that making investment into OLED will help it to dominate when the technology becomes mainstream. Those displays are used to produce televisions, computer screens and mobile devices. “The Korean government will be active in providing more supportive measures to help the country maintain continued leadership in the global display industry even in OLEDs”.
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.
LG believes its giant investment will pay off as the OLED market poses a greater growth opportunity than the LCD market, where growth has stagnated.
Advertisement
LD display is to invest $8.5bn in next generation OLED displays over the next three years, with the displays designed specifically for TVs, smartphones and wearables.
