To Ramp up Supply to Apple
LG Display has begun expanding plastic OLED production facilities in its Paju campus to ramp up supply to Apple.
LG Display has decided to expand E6-3 Line in Paju, which produces OLEDs for small and medium-sized panels. It has recently started placing equipment orders on Korean and foreign vendors. LG Display is expected to invest about 1.5 trillion won into E6-3 Line.
E6-3 Line is a sixth-generation plant that produces small and medium-sized OLEDs used for mobile devices such as smartphones and tablet PCs. E6-3 Line can process 15,000 6th-generation substrates per month. In particular, OLEDs produced here are flexible as they are produced from plastic substrates instead of glass. Recently, demand for plastic OLEDs is increasing from smartphone manufacturers amid growing demand for foldable phones.
LG Display has already brought in organic vapor deposition equipment from a Japanese company. Organic vapor deposition equipment is a device that deposits organic materials on substrates so that OLEDs can emit light on their own. Japanese companies such as Canon Tokki and Albak control the organic vapor deposition equipment market.
However, E6-3 Line has since been left virtually empty without additional equipment brought in, due to poor business conditions and business results. Industry experts believe that increased orders for plastic OLEDs from Apple prompted LG Display to expand the line. The company’s improving profitability probably also played a role. Eugene Investment & Securities forecasts LG Display to switch to a surplus for the first time in seven quarters by posting 34 billion won in operating profit in the third quarter of this year.