LCD Panel Prices Forecast to Soar in May
LG Display's sales grew 46 percent on year to 6,882.8 billion won in the first quarter of 2021, according to the Financial Supervisory Service’s electronic disclosure system. Its operating profit stood at 523 billion won, a turnaround from an operating deficit in the first quarter of 2020.
Although the first quarter is usually an off-season, the trend of staying home due to concerns over COVID-19 led to a rise in demand for TVs. In fact, the share of IT panel in total sales in the first quarter was the highest at 40 percent. TV panels and mobile panels accounted for 31 percent and 29 percent of sales, respectively.
The solid LCD business performance was attributable to an increase in prices of LCD panels. Industry insiders are predicting that LCD panel prices will soar in May, more than doubling from previous forecasts.
Under these circumstances, LG Display is expected to accelerate restructuring of its LCD business, focusing on high-value-added products. "We are planning to gradually halt production of less competitive LCD panels for Korean TVs," a company official said. "We will shift the focus to high-value-added LCDs for IT devices, vehicles, and commercial products."
LG Display expects OLED to emerge as a game changer. The company is currently capable of processing 140,000 glass substrates per month, which includes 80,000 substrates at its plant in Paju, Korea, and 60,000 substrates at its plant in Guangzhou, China which began volume production in July 2020.