South Korean display maker LG Display is expected to begin mass productions at its Guangzhou plant in China producing large-sized OLED panels immediately after the lunar New Year’s holiday ending on Jan. 28, according to industry watchers on Jan. 16.
This follows on the heels of events held in China last month to celebrate the plant hitting its target yield.
The Guangzhou plant was completed in August, 2019. Earlier, the display maker could start mass productions at the end of 2019, but the move was delayed due to yield issues.
At the Consumer Electronics Show held in the US earlier this month, LG Display CEO Jung Ho-young said at a press conference that the company has gotten to the root of the problem involving the yield problems. He predicted that mass productions could begin during the first quarter of this year.
Amid faltering demand for OLED panels for TVs, LG Display is looking to cut costs with its Guangzhou OLED plant.
The LGD CEO says that once the plant begins operations, the company is looking to increase production by up to 90,000 panels a month.
Currently, the Guangzhou plant is capable of producing 60,000 of Gen-8.5 panels a month. Equipment that can add around 30,000 more panels were found to have entered the plant at the end of 2019. A 90,000 monthly production would be even higher than the 70,000 produced from its domestic OLED plant.
Meanwhile, LG Display has proclaimed that up to 70% of its equipment at the Guangzhou plant would be supplied by South Korean suppliers, while 60% of the components would also be supplied domestically.
The Elec is South Korea’s No.1 tech news platform.