On July 23, LG Display officially announced that its 8.5-generation OLED panel production line built in Guangzhou, China was officially put into mass production, and the popularity of the OLED TV market ushered in a major acceleration.
In the afternoon of the same day, LG Display held a mass production and shipment ceremony of OLED panels at its factory in Kaitai Avenue, Science City, Guangzhou High-tech Industrial Development Zone. LG Display CEO Ding Haorong, CPO Shen Xiangwen, Operation Support Vice President Yang Zaiming, and Strategic Director Song Yongquan The company’s leadership and employee representatives attended the ceremony for mass production and shipment.
After the formal mass production of the Guangzhou OLED panel factory, it will become LG Display's two major production bases with the OLED panel factory in Paju, South Korea. This will transform the large-size OLED industry from unipolar to bipolar, laying the foundation for the popularization of large-size OLEDs. The Guangzhou OLED plant currently has a monthly production capacity of 60,000 glass substrates, and the total monthly production capacity of the Paju plant in South Korea is 70,000 pieces. The monthly production capacity of the new Guangzhou plant can be increased from 60,000 to 90,000 glass substrates based on market demand.
LG Display CEO Ding Haorong said at a symposium with employees after inspecting the new Guangzhou factory: “Large-size OLED is the core of LG Display’s future development. The formal mass production of the 8.5-generation OLED panel factory in Guangzhou will greatly promote the large-size OLED industry. Qualitatively rapid development."
At the same time, CEO Ding Haorong said: "The mass production of the new Guangzhou factory has gone through many twists and turns. I would like to express my gratitude to all employees who have worked hard for the successful mass production of the new Guangzhou factory. There is still a long way to go to achieve higher goals. LG Display It will continue to increase the differentiated value of its products to widen its distance from competing companies, thereby consolidating its leading position in the large-size OLED industry."
LG Display built a module factory in Guangzhou in 2006 and invested in an LCD panel factory in 2012. The mass-produced Guangzhou 8.5-generation OLED panel production line is LG Display’s third production line established in Guangzhou, China after the module factory and LCD production line, and it is also the first large-size OLED panel production line built outside Korea. The Guangzhou OLED panel factory will build a bipolar production base system for the OLED industry together with the Paju OLED factory in South Korea to promote the global OLED popularization.
OLED TV market popularity is expected to accelerate
This year, with the heavyweight Chinese home appliance manufacturers such as Huawei and Xiaomi, as well as the "father of LCD" Sharp, American home appliance leader Vizio and other international manufacturers have entered the OLED camp. Currently, there are 19 manufacturers in the OLED camp globally. The industry expects major changes in the OLED industry structure. In 2013, LG Electronics and Skyworth took the lead in launching OLED TVs in the world, and the era of OLED TVs has officially opened. The home appliance manufacturer Hisense, one of China's three giants, officially launched OLED TVs in the Chinese market last year. The industry believes this will be an important turning point for the development of China's OLED TV market. In addition, as IT giants Huawei and Xiaomi, which leads the trend of the Chinese TV market, have joined the OLED TV camp this year. The industry expects that this will become another engine to promote the development of China’s OLED TV market, thereby changing the global OLED TV landscape and turning China into The core area of the global OLED TV market.
With the continuous expansion of the OLED camp and the official mass production of LG Display's 8.5-generation OLED panel factory in Guangzhou, it will fully promote the popularization of OLED TVs.
According to data from market research agency Omdia, although the home appliance market is affected by the new crown pneumonia epidemic, the OLED TV market will continue to grow. The sales volume of OLED TVs this year is expected to reach 4.4 million units, and the sales volume of OLED TVs will increase steadily. It is estimated that the annual sales volume will exceed 12 million units by 2025.
China is expected to become the core strategic base of global OLED
According to data from market research agency Omdia, global TV shipments in 2019 were 220 million units, of which 74 million TVs were shipped in the Chinese market, accounting for 33.5% of global shipments, which is the largest in the world China’s TV consumer market is expected to account for 39.1% of the global TV shipments this year.
Among them, China's OLED TV shipments are also showing an increasing trend. According to market research firm Omdia, China’s OLED TV shipments accounted for 6.8% of global OLED TV shipments last year, and shipments are expected to triple in 2022.
The industry believes that China's OLED TV market has endless potential. There are most OLED TV brands in the world in the Chinese market, and Chinese consumers have more choices. Especially this year's blessings from giants such as Huawei and Xiaomi will become a catalyst for the development of China's OLED TVs.
In addition, relevant departments have continuously introduced supporting policies for next-generation technology industries such as 5G network construction and ultra-high-definition video to promote the development of future industries such as OLED. Among them, the "Opinions on Cultivating and Developing Strategic Pillar Industrial Clusters and Strategic Emerging Industrial Clusters" recently issued by Guangdong Province stated that by 2025, the focus will be on building smart home appliance industry clusters and ultra-high-definition video display industry clusters. The industry predicts that, driven by policies, high-end display industries such as ultra-high definition and OLED will usher in new development opportunities in the future.
LG Display, a global mass production manufacturer of large-size OLEDs, has established an OLED production line in this key market, which not only can provide leading technology for Chinese TV manufacturers, but also stabilize the supply of goods and bring resources closer to Chinese customers. The industry believes that this will promote China to become the core strategic base for the development of the OLED industry in the future.
OLED helps Chinese manufacturers enhance their international competitiveness
LG Display has invested and built factories in China since 2002, and has continuously strengthened close cooperation with Chinese customers to jointly lead the market development trend. The Chinese market has a strong ability to absorb new technologies, and OLED has received strong support from Chinese customers in the early days of its listing. LG Display will continue to provide Chinese customers with new technologies and new products to help China continuously improve its competitiveness in the international market. With the formal mass production of Display's 8.5-generation OLED factory in Guangzhou, China will become the world's second mass production base for OLED TV panels, laying the foundation for the development of China's OLED market and the future development of China's global OLED market.
LG Display has invested in the modeling group factory in Guangzhou in 2006 and built an LCD panel factory in 2012. Currently, the LG Display Guangzhou Industrial Park is centering on the LG Display module factory and the panel factory. The LG Display Guangzhou Industrial Park exerts the synergy effect of "components-panels-finished products" to form Cover the upstream and downstream industrial clusters of the panel, and create local jobs and make a significant contribution to economic development. At the same time, LG Display relies on its leading technical strength and OLED next-generation display technology to contribute to Guangzhou's creation of the "International Display Capital" and contribute to the construction of the Guangdong-Hong Kong-Macao Greater Bay Area.