According to recent reports from South Korean media, LG Display has announced plans to invest approximately $7 billion in its facilities located in South Korea. This substantial financial commitment aims to enhance the production capacity of OLED displays, particularly focusing on high-end smartphone applications. Industry analysts suggest that LG Display's goal is to secure major clients such as Apple, which could significantly boost the company’s market position.
The investment will primarily target the expansion of OLED production lines, with a significant portion—around two-thirds—allocated to large-sized panels and the remaining third dedicated to smaller, more compact screens. These OLED displays are expected to cater not only to LG’s internal needs but also to other leading smartphone manufacturers globally. It’s highly probable that flagship models from various brands will feature these advanced OLED screens.
Previously, rumors suggested that Apple was considering collaborating with LG Display to bolster OLED screen supplies. There were talks of Apple investing $1.75 billion to support LG’s OLED production initiatives. Additionally, LG Display had reportedly planned to establish a dedicated OLED production line tailored specifically for Apple's orders. However, despite these efforts, increasing OLED output remains challenging due to stringent quality standards imposed by Apple.
Industry experts note that Apple demands exceptional quality in OLED screens, and currently, Samsung is the sole supplier meeting those criteria. While LG Display has achieved a 70% compliance level, Chinese competitors are actively working towards closing this gap. Consequently, numerous manufacturers are vying for Samsung’s OLED output, compelling Apple to explore alternative suppliers like LG Display to ensure a steady supply chain.
In conclusion, this $7 billion investment underscores LG Display’s ambition to expand its OLED capabilities and capture a larger share of the premium smartphone display market. While challenges persist, particularly regarding meeting Apple’s rigorous standards, the company remains optimistic about future growth opportunities in both large and small OLED segments.
DongGuan BoFan Technology Co.,Ltd. , https://www.ufriendcc.com