LG Display's LCD production expected to plunge 10% in second half

With the continuous production of LCD TV panels from Chinese factories, the supply is all over the world, causing LCD prices to drop frequently. It is rumored that South Korean panel giant LG Display will struggle to compete, and production will plummet by 10% in the second half of this year.

The Korea Economic Daily reported on May 2 that insiders revealed that starting this month, LG’s Paju plant in South Korea and Guangzhou plant in China will cut the production of glass substrates for LCD assembly lines. The company’s LCD TV panel output in the second half of the year will be reduced. It will decrease by more than 10% compared with the first half of the year. It is understood that LG will not completely withdraw from the LCD business in the near future, but will focus more on the production of OLED panels.

Chinese factories mass-produced and seized the market at very competitive prices, causing global LCD TV panel quotations to continue to decline. LG was defeated and decided to significantly reduce production. Prior to this, another Korean manufacturer, Samsung Display, had announced that it would exit the LCD business by the end of 2022 due to deteriorating profits.

Faced with increased competition from Chinese panel makers, it is difficult to manufacture LCD panels at a price higher than cost. Samsung believes that the panel decline is not temporary, so it simply gave up LCD research and development and production. In addition, it is expected that as people return to their pre-epidemic lifestyles, LCD TV panel quotations will accelerate lower in the second half of the year. Research scholars said that compared with Chinese factories, LG is difficult to maintain price competitiveness, and may eventually abandon the LCD business.