Clearly, LG Display can't do it... The subsidiary of the Korean group LG, in charge of manufacturing LCD/Oled screens for the TV, computer, automobile and smartphone markets... continues its descent into hell with the announcement this morning of a fourth consecutive quarter in the red with a quarterly loss of nearly 1.5 billion dollars.
Factory Oled Gen 10.5 TV panels, a necessity for LG Display…
However, last October, when LG Display had just published poor results for the third quarter of 2022 and was setting the stage for a gloomy last quarter of 2022, the firm anticipated a recovery in orders from the start of 2023. Alas, three times alas, the economic situation remains bleak and sales of televisions, even more premium OLED models, desperately sluggish. Currently based on two 8.5 generation factories, the production of OLED TV panels is optimized for diagonals from 42'' (106 cm) to 77'' (196 cm). The erection of a Gen 10.5 factory would allow LG Display to produce large diagonal OLED TV panels, beyond 80 '' at a reduced cost. A necessary strategy, first of all, to support the television market, whose large-size segment has been growing strongly in recent years. This segment is even the one that should benefit from the recovery in TV sales expected at the end of 2023 (see our TV Market 2023 news: slight growth in large sizes). A strategy that is also necessary to respond to the drastic reductions in price announced for large LCD diagonals, for example at TCL, whose objective is to offer 85'' (216 cm) television sets this year at less than €2,000 (for example the TCL 85C845 Mini LED specimen), through a cashback offer or during the next Black Friday next November. Without a 10.5 generation factory, it will be difficult for LG Display to remain competitive in terms of retail price. But it is even more difficult for the Korean company, in view of its very degraded finances, to support the required investment, several billion dollars.
Factory Oled Gen 10.5 TV panels, time is playing against LG Display
Hence LG Display's management decision to once again postpone its construction (see our news LG Display 10.5th generation Oled TV factory delayed to 2023), pending a return to better fortune. If the Korean press speaks of 2028 to see it emerge from the ground, LG Display has not given any details for its formalization. But time is playing against LG Display, the more it passes, the more large LCD Mini LED TVs at very attractive prices and/or QD Oled whose costs will also be quickly reduced will prevail in place of White TVs. Oled.