Taiwan Industry And Commerce Times: LGD Is Out Of Play? Apple Display Supply Chain Reshuffle

- Oct 28, 2019-

LGD intends to withdraw from the small and medium-sized panel business that burns money. LGD has officially informed Apple that it will no longer supply Apple's new products after the shipment of existing products has come to an end. 

LGD is currently one of the main panel suppliers of all the apple's product lines, and if lgd exits, the beijing-east has the opportunity to accelerate certification and access the iphone supply chain, and jdi will supply the apple catch panel at the end of this year. In the first half of lgd, the first half of lgd was announced in september, and lgd's chief executive, led by the financial background, took over lgd's chief executive. 

In less than a month's office, Ding Haarong, the big-scale reform, first announced a large-scale excellent return, and cut off 25% of the high-order executive; and with the new production capacity of the new 10.5-generation factory-led tv panel in the State of State of the Republic of Korea and the mainland, the lgd plans to close half of the 7.5-generation and 8.5-generation lines in 2020. And gradually exit the liquid crystal television panel market. 

lcd display

In the near-term market, lgd informs the big client that it will no longer invest in new product development and supply after the iphone and apple catch have shipped the product. Since the top customer of the lgd smart phone panel and smart watch is apple, this is equal to the announcement that lgd will exit the small and medium-sized panel business. 

LGD is one of apple's largest panel suppliers, and its product line is also the most comprehensive, with the exception of the iphone ltps panel, the 5.8-inch iphone's oled panel, and the flexible oled panel of apple watch, the largest panel supplier of apple's ipad, macbook, and imac. The adjustment of the follow-up lgd operation strategy is of continuous concern. 

Apple's first flexible oled screen phone, the iphone x, was launched in 2017, hurting existing panels. Jdi, the japanese panel factory, was unable to invest in oled panels because of its poor financial situation, and its existing ltps panel capacity utilization was low. 

lcd display

The white mountain plant built for apple has not resumed work. Lgd, which has invested heavily in oled, now produces two six-generation oled panels, but only 5.8-inch iphone 11 pro this year because of apple's strict certification and a long learning curve for oled panel production.

 Lgd, however, intends to fade out of the small and medium-sized panel business, giving other panel suppliers the chance. The iphone oled panel is still samsung's only one, and once lgd doesn't play, beijing and eastern are expected to accelerate certification and gain access to the iphone supply chain. 

As for apple watch panels, lgd supplies more than 70%, samsung only 30%, this year jdi maoyuan factory has been certified, as soon as the end of this year will have the opportunity to supply apple watch for the first time.