According to the latest report, the LGD Guangzhou 8.5-generation OLED factory will start moving in from mid-October. The Guangzhou factory was originally scheduled to be put into production in the first half of 2019, but the Chinese and South Korean governments postponed the approval, which delayed the production time of the factory by about 3 months. It is expected to start production in the second half of next year.
Although the local government inspection was later than expected, the LGD Guangzhou plant did not slow down the construction speed, but concentrated on starting the project as soon as possible. After the Chinese government approved it in July, in order to recover the production time, work late at night, and work hard to complete the building in advance. LGD related people explained that the plant has entered the final stage, and it is expected that equipment will be moved in Guangzhou in October.
The LGD Guangzhou plant will begin mass production in the second half of next year, and the large-size OLED production capacity will double. At present, the production capacity of the L3 Paju E3 and E4 plants is 70,000 per month, and the Guangzhou factory is 60,000 per month. In the future, according to market conditions, the production line will be increased to a maximum of 90,000 sheets. In the second half of next year, all of them will start at a scale of 130,000 sheets per month, and the number will increase to 160,000 in the future.
After the LCD market, which mainly contributed profits, entered a longer stagnation period, the OLED business expanded. Although the LCD panel market has rebounded slightly from July, LGD has not relaxed its vigilance because its growth rate is not large and the recovery period is not expected.
The Guangzhou plant is equipped with fully validated process technology and optimal production environment, which will become an important springboard for OLED transformation.
According to industry analysts, LGD Guangzhou LCD factory has low labor costs and is close to the world's largest market, China, which is quite good in terms of product production efficiency. It is expected that LGD Guangzhou's OLED production line efficiency will be the best, and the production line is expected to be profitable within one to two years after it is officially put into production.
In addition to accelerating the Guangzhou plant, LGD's 7th and 8th generation LCD production lines are also turning to OLED production. The Guangzhou plant is about one year away from production, and the Pazhou P10 plant invests in 10.5 generation OLEDs, so it is impossible to determine the time and scale of conversion. .
Experts suggest that LGD should focus on expanding large-size OLED production capacity and ensuring new technologies. Because in the large-size OLED panel market, there are no other competitors, expanding the OLED TV market while meeting demand. Another analysis believes that in order to open the gap with Samsung, BOE and other panel giants, it is necessary to significantly increase the productivity and performance of existing OLEDs, or to seize the new technology market, in order to remain competitive.
LGD Guangzhou factory purchases OLED equipment contract
The construction of the LGD Guangzhou plant is coming to an end, and the equipment is scheduled to move in next month. Recently, the equipment purchase order news has frequently appeared. Looking back, in the past month, Xiao Cjun previously reported LGD Guangzhou equipment purchase orders:
On August 16, LGD Guangzhou and YAS signed two sales contracts for manufacturing equipment, with a total order value of 194.1 billion won (about 1.2 billion yuan);
On August 29th, LGD Guangzhou | signed a total of 56.5 billion won (about 344 million yuan) OLED equipment purchase contract with HANSONG and JUSUNG;
On September 4, LGD Guangzhou and Zeus signed a contract for the purchase of 21.5 billion won (about 130 million yuan) of OLED display heat treatment equipment.
On September 5, South Korea's LCD and semiconductor equipment manufacturer LEED announced that it has signed a display manufacturing equipment supply contract with LG Display Guangzhou G8.5 OLED production line with a contract amount of 22.069 billion won (about 135 million yuan).
