Investment in OLED
Samsung Display and LG Display have both established plans to make 4 trillion won (US$3.6 billion) and 1 trillion won (US$901 million) investments each into their respective OLED production facilities, actively seeking to commercialize OLED panels.
LG Display is focusing on an increase in the production of large OLED panels to sharpen its competitiveness in the TV market. Samsung Display, on the other hand, is concentrating on expanding the production of flexible OLED displays for mobile devices.
According to the Ministry of Trade, Industry and Energy (MOTIE) on Feb. 11, Samsung Display is planning to inject 4 trillion won into OLED production facilities over the next three years, including the enlargement of its A3 plant.
The main point of its plan is to make step-by-step investments in order to improve the productivity of its OLED panels. Specifically, Samsung Display plans to enlarge its A3 plant that produces small and medium-sized flexible OLED displays and to invest in its A2 line for small-to mid-sized OLED panels.
Experts are saying that Samsung Display's investment focuses on targeting the flexible OLED display market for mobile devices, in that the A3 plant is designed to produce flexible OLED displays. The company has invested in the A3 line since the latter half of last year in order to operate the facility during the first half of this year. Samsung Display revealed its plan to inject 4 trillion won in production facilities this year, including the enlargement of the A3 plant, at a conference call, following its announcement of results for Q4 2014 in January.
When asked about its large-scale investment in its plant to produce OLED panels, a representative of Samsung Display said, “We haven't decided yet.”
LG Display, the only company capable of mass producing large display panels for OLED TVs, is reportedly going to invest around 1 trillion won in its OLED line this year to expand the market. According to the MOTIE and industry sources, the world's largest LCD panel maker is scheduled to pour the additional funds into the E4 line in Paju, Gyeonggi Province this year to make large OLED panels. So far, the company has injected around 800 billion won (US$720 million) in the production facility since 2013.