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Company News >> LGD strategy shift, next year OLED TV panel revenue will exceed LCD for the first time 22th,Sep,2023

LG Display is accelerating its shift from LCD panels to OLED panels as LCD prices continue to decline and the profitability of its LCD business is deteriorating.

LGD strategy shift, next year OLED TV panel revenue will exceed LCD for the first time

According to data released by IHS Markit on October 9, LG Display OLED sales are expected to account for only 17% of total sales this year. The company posted two consecutive quarterly losses, with a first-half loss of 500 billion won ($418.69 million). LG Display has recently been restructuring its LCD business.

It is expected that from next year, with the rapid growth of the proportion of OLED sales, the company's profitability will improve. LG Display plans to shut down its LCD production line and expand OLED production. The company's 8.5-generation OLED production line in Guangzhou, China, started mass production of OLED panels in August.

In July, the company announced a plan to invest an additional 3 trillion won (17.9 billion won) in its 10.5-generation OLED production line in Paju. As a result, LG Display OLED sales are expected to increase to 29 percent. In particular, due to the operation of the 8.5-generation OLED production line in Guangzhou, sales will exceed LCD panels next year.

IHS Markit said LG Display's sales of LCD TV panels and OLED TV panels this year are estimated at $6.20 billion and $2.80 billion, respectively. But sales of OLED TV panels will reach $4.5 billion next year, surpassing $3.09 billion for LCD panels. The company is expected to increase the proportion of OLED sales to 41% by 2022 and 49% by 2024.

The recovery in LCD prices will also help LG Display shift to the OLED business and improve performance. If the LCD business continues to slump, LG Display's plan to switch to the OLED business may also be delayed.

Not only LG Display, but also Samsung Display will close the LCD business and focus on the OLED business. Samsung Display's share of OLED sales is expected to grow from 73% in 2018 to 93% in 2024.