Increasing LCD Production
According to industry sources on March 29, LG Display Nanjing recently completed facility expansion and is testing its new equipment before initiating mass production in the second quarter of this year.
Until last year, the company produced LCD modules in three facilities. The new facility is expected to increase the company’s annual production capacity by 20 million units to 70 million.
LG Display Nanjing remodeled its existing PDP module manufacturing facility to build the new N4 Plant. Previously, LG Display Nanjing acquired the facility from LG Electronics back in 2009, used it, and lent it to LG Chem before filling the plant with LCD manufacturing equipment transferred from South Korea.
The purpose of the facility expansion is to better penetrate the Chinese market, which is the largest IT device market in the world. These days, LCD oversupply is accelerating from China but the demand for premium LCD products is on the rise at the same time.
In 2016, the Chinese market accounted for no less than 70% of LG Display’s total sales. In this regard, LG Display has increased the production capacity of its LCD plant in Guangzhou, which reached 180,000 units a month last year.