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LG Expects to Produce 10M OLED Panels Annually by 2022 With New Production Plant

SEOUL—LG Display today announced the opening of its 8.5th generation (2,200mmx2,500mm) OLED panel production plant in Guangzhou, China, and says it expects the plant to produce 10 million large-size OLED panels annually by 2022.

LG Display’s new Guangzhou OLED panel plant started mass-production this month and will mainly manufacture large-size high-resolution OLED products including 55-inch, 65-inch and 77-inch panels. The initial monthly capacity will be 60,000 sheets, which will be further expanded to 90,000 sheets by 2021.

The company expects to produce more than 10 million OLED panels a year by 2022, when this monthly capacity of 90,000 sheets is combined with the 70,000 sheets currently manufactured at its OLED panel plant in Paju, Korea, as well as an additional 45,000 sheets to be produced at its 10.5th generation (2,940mmx3,370mm) plant in Paju from 2022.

The new 8.5th generation OLED panel plant is operated by LG Display High-Tech China (LG Display High-Tech China Co. Ltd, LGDCO), a joint venture established between LG Display and Guangzhou Development District (GDD). LG Display holds a 70% stake with KRW 2.6 trillion in capital.

“Based on our vast experience and capability in OLED production, LG Display will make every effort to ensure the success of LG Display High-Tech China,” said Dr. Sang Beom Han, CEO and vice chairman of LG Display, at the opening ceremony attended by Korean and Chinese officials, top executives from LG group and representatives from customer and partner companies. He added, “With our dual OLED panel production sites in Korea and China, the company will further accelerate the OLED trend in the global premium TV market by providing large-size OLED panels to the world.”

The new 8.5th generation OLED panel plant is built on 74,000 m² of land—the equivalent of around 10 football fields. With nine levels above ground, the total floor area amounts to 427,000 m². The total area of the LG Display Guangzhou Cluster, which includes LCD panel and module plants, partner company complexes and additional facilities, amounts to 1.3 million m².

LG Display says since its customers, including LG Electronics, Sony, Philips, Hisense, Skyworth, Changhong, and Konka, operate TV production plants in China, the company will further boost its competitiveness by providing technology and products in a timely manner.

The global sales of OLED TV in 2020 are expected to reach 5.5 million units and further increase to 7.1 million units in 2021 and 10 million units in 2022, according to global market research firm IHS Markit.