LG Display may be pushing back mass production at its Gen-10.5 OLED line in Paju to as late as 2023, according to the industry sources on Dec. 27.
The display maker recently informed its key suppliers of the delay, including YAS, an organic deposition equipment maker that is now slowing down its plans to build a new plant manufacturing equipment going into LGD’s Gen-10.5 production line. Previously, completion had been scheduled for August this year.
“YAS has decided to take its time on LGD’s decision to postpone the mass production,” said one industry watcher on the condition of anonymity.
In March, LG Display issued a letter of intent to YAS to purchase equipment for the Gen-10.5 line. LGD requested the equipment to enter its plant by February, 2020. In May, the display maker had already installed TFT CVD equipment on plans to use two units from Applied Materials and one from Jusung Engineering.
LG Display’s investment plans also may be put on hold, according to those close to the matter. In July, the display manufacturer had decided to invest an additional KRW 3 trillion into the Gen-10.5 OLED line to increase production capacity to a monthly 45,000 by 2023. These plans have faced scrutiny after the display maker conducted severe restructuring including a 25% cut to the workforce.
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