LCD TV panel production capacity of Chinese factories continues to open, supply all over the world, leading to LCD prices falling frequently. LG Display (LGD), a South Korean panel giant, is rumoured to be struggling to compete, with production plunging by 10% in the second half of this year.
Lg's LCD TV panel output in the second half of this year will drop by more than 10 percent compared to the first half, the Korea Economic Ilbo reported On May 2, citing sources close to the situation. Lg's PLANTS in Paju, South Korea, and Guangzhou, China, will cut production of glass panels from LCD assembly lines starting this month. It is understood that LGD will not withdraw from the LCD business completely in the near future, but will focus more on producing OLED panels.
LGD decided to cut production sharply as the price of LCD TV panels around the world continued to fall due to the Chinese factory's massive production and competitive price to capture the market. This comes after another South Korean manufacturer, Samsung Display, announced it would exit the LCD business by the end of 2022 due to deteriorating profits.
Prices for 55-inch LCD TV panels have fallen 30 percent in the past six months, from $150 in April to an estimated $103 in May, according to Omdia. Over the same period, prices for 65-inch LCD TV panels plunged 19.5%, from $173 in April to an estimated $170 in May.
South Korean panel industry insiders say increased competition from Chinese panel makers makes it difficult to produce LCD panels above cost. Samsung decided that the panel decline is not temporary and gave up the development and production of LCDS. It is expected that prices for LCD TV panels will accelerate in the second half of the year as people return to their pre-epidemic lifestyles. Researchers say LGD is struggling to maintain price competitiveness compared with its Chinese rivals and could eventually abandon the LCD business.
