Widening Gap with China's BOE
LG Display will supply OLED panels based on low-temperature poly-crystalline oxide (LTPO) technology to Apple for the iPhone 14 series, which will be launched in the second half of 2022, industry sources said on Feb. 8.
LTPO is a next-generation thin film transistor (TFT). A TFT serves as an electrical switch that controls the brightness of light by controlling a display's red, green and blue (RGB) pixels. It is a combination of low-temperature crystal silicon (LTPS) and an oxide TFT, and has the advantage of high power efficiency. LPTO displays allow you to have both a high refresh rate and resolution without consuming much power. High refresh rate displays allow you to get smoother scrolling and more immersive experiences.
Until now, only Samsung Display has been able to produce LTPO TFTs. It was used in smartwatches and started to be used for smartphones beginning from the Galaxy Note 20 Ultra. Apple first applied LTPO displays to the top two models of the iPhone 13 series. Displays for the two products were exclusively supplied by Samsung Display. Two low models were loaded with LTPS TFT-based OLED panels.
Some experts say that Apple has requested LG Display to produce LTPO TFT-based panels to reduce its excessive dependence on Samsung Display. LG Display has secured its own LTPO technology, called multi TFT OLEDs (MTOs). MTO technology was developed based on the method of adding some processes to LTPS TFTs.
LPTO technology will help LG Display widen its gap with China's BOE, which is threatening Korean display companies by officially joining Apple’s iPhone 13 series supply chain. As BOE panels are used mainly for low-end iPhone models, LG Display was hit harder than Samsung Display. LG Display boosted its competitiveness by beginning to supply display panels for high models. BOE’s goal is to deliver LTPO TFT-based OLED panels to Apple next year or the following year.
Meanwhile, LG Display started investing in small and medium-sized OLED panels in earnest. It began ordering equipment in November 2021. LG Display plans to invest 3.3 trillion won in related businesses by March 2024.