UPDATED. 2024-07-19 07:49 (금)
Innox overtakes LG Chem in OLED encapsulation film supply to LG Display
Innox overtakes LG Chem in OLED encapsulation film supply to LG Display
  • Gijong Lee
  • 승인 2021.08.25 17:38
  • 댓글 0
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Firm widens its share gap with LG Chem
Innox to benefit from high demand for TV OLED panels
OLED encapsulation film Image: TheElec
OLED encapsulation film Image: TheElec

Innox Advanced Materials has expanded its share in OLED encapsulation film within LG Display’s supply chain to near 60%, TheElec has learned.

Innox had supplied 59% of the film used by LG Display during the first half of the year, sources said. LG Chem supplied the remaining 41%.

The film is used to prevent oxygen or water reaching the organic material used in the panels.

LG Chem has once dominated the film supply to LG Display, but Innox also began supplying to the South Korean display panel maker in 2018.

The pair has maintained similar shares in supply to LG Display up to last year.

But beginning in the first quarter this year, Innox has began overtaking its rival LG Chem. During that quarter, Innox had supplied 54% of the films used by LG Display, while LG Chem provided 46%.

Their share differences widened further during the second quarter, allowing Innox to overtake LG Chem as the dominant supplier with over 20 points difference in supply shares.

Innox is expected to see its profit go up from that dominance as LG Display is expected to ship more large-sized OLED panels, used in TVs, going forward.

LG Display moved 3.5 million units of large-sized OLED panels in the first half of the year __ 80% of what it shipped in 2020.

LG Display is aiming to ship 2 million units in the third quarter alone.

The South Korean panel maker is benefiting from the price rise in liquid crystal display panels as the price decline of OLED panels. It also started operating its factory at Guangzhou, which is further helping LG Display control OLED panel prices.

The growth will also allow Innox to reduce its reliance on Samsung’s smartphone business.

Innox recorded 204.4 billion won in sales and 33.5 billion won in operating income during the first quarter, an increase of 41% and 173%, respectively, from a year ago.

Innox began the development of OLED encapsulation film in 2016, completing the technology in 2017. It has offered them at a lower rate to LG Display than LG Chem.

LG Chem had filed a patent infringement lawsuit against Innox in 2019, but the pair settled the suit in November last year.

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