LCD TV panel prices soar! LGD South Korea production line is postponed to stop production

Demand for liquid crystal (LCD) TV panels is booming, with prices rising by as much as 30% in the third quarter. South Korean giant LG Display (LGD) is looking profitable, and it is rumored that the company’s South Korean LCD panel production line was postponed to close.

Korean media Etnews reported on October 8 that in January of this year, LGD announced that the company’s LCD TV panel production line in South Korea will be completely discontinued by the end of this year. Industry news now reveals that LGD's attitude has changed sharply, and the suspension of production lines in South Korea has been postponed by one year. This decision has been notified to partners and related companies.

At the beginning of this year, LGD decided to stop the production line in South Korea in order to shift the main production force to OLED. Chinese companies are rushing to market at low prices, forcing LGD to switch to high-priced OLED products. However, the outbreak of the epidemic has changed LGD's views. The new crown pneumonia is raging and people spend more time at home. The demand for home entertainment has increased, which has boosted TV buying. The global TV market has improved significantly, prompting LGD to revise its decision.

Industry: LGD's OLED business will surpass LCD for the first time this year

LGD continues to develop its OLED business as it extends LCD production. Pulse reported on October 5 that it is estimated that LGD's OLED TV panel revenue will surpass LCD for the first time this year. Omdia predicts that LGD’s OLED panel revenue this year will account for 55% of the total TV panel revenue, which is higher than last year’s 33%.

Yuanta Securities Korea also estimates that LGD's OLED TV panel revenue will reach 3.5 trillion won (about 20.5 billion yuan) this year, which is higher than the 3.4 trillion won (about 19.9 billion yuan) of LCD TV panels. The brokerage predicts that next year LGD's OLED sales will reach 5.2 trillion won (about 30.6 billion yuan), and LCD will continue to drop to 2.8 trillion won (about 16.4 billion yuan).