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Samsung and LG Use Massive Investments to Protect their Display Franchise
October 21, 2019 Samsung Display and LG Display will spend a combined 20 trillion won ($17 billion) to accelerate migration to OLED in a last ditch attempt to retain display industry leadership versus Chinese ascension. Both companies have already spent 50 trillion won since 2010 to make headway in the OLED market. Samsung Display’s recently announced a 13.1 trillion won investment plan over the next five years to produce QD/OLED displays by converting its Gen 8.5 L8 display line in Asan, Chungnam Province. The company will spend 10 trillion won in building the line and 3.1 trillion won for research and development. Samsung Display may respond to tougher industry competition with an additional massive investment in the future in the large-sized display market. Samsung Display is considering a Gen 11 or Gen 12 Fab instead of its planned 8.5-Gen line to get larger and more panels concurrently, given the Gen 10.5 fabs in China and LG’s Gen 10.5 Fab under construction in Paju, according to Kim Dong-won, KB Securities’ research center executive. Figure 1: Samsung and LG OLED Facilities and Investments |
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Source: Companies
Table 1: Samsung OLED Fabs
Source: Pulse News, OLED-A
Table 2: LG Display OLED Fabs
Source: Pulse News, OLED-A
LG Display earlier decided to inject an additional 3 trillion won into its P10 line under construction in Paju to further increase its market share in OLED business. In 2015, the company announced a 4.64 trillion won project for P10 to produce 30,000 10.5-Gen substrates a month. The additional investment will increase its monthly capacity to 45,000 substrates.
LG Display has also long reviewed a plan to convert its P7 and P8 lines for LCD into ones for large-sized OLED panels. The line conversion will require additional investments worth billions of dollars. LG Display wants to increase its presence in the market of small and medium-sized OLED panels for which it will spend more to ramp up production at its E5 and E6 lines.
Samsung Display has spent about 27 trillion won since 2011 to produce OLED panels from its A2 and A3 lines in Asan. LG Display is estimated to have spent 30 trillion won in total for OLED production. From: Pulse News
LG Display has also long reviewed a plan to convert its P7 and P8 lines for LCD into ones for large-sized OLED panels. The line conversion will require additional investments worth billions of dollars. LG Display wants to increase its presence in the market of small and medium-sized OLED panels for which it will spend more to ramp up production at its E5 and E6 lines.
Samsung Display has spent about 27 trillion won since 2011 to produce OLED panels from its A2 and A3 lines in Asan. LG Display is estimated to have spent 30 trillion won in total for OLED production. From: Pulse News