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With Apple Commitment in Hand, LG Expands S/M OLED Panel Capacity
LG shipped ~5m units to Apple last year and are expected to supply ~20m displays this year and more in 2021. To service the demand, LG Display is building out the 3rdphase of its E6 Gen 6 OLED fab to provide additional capacity, primarily to Apple.
E6 has a capacity 30,000 Gen 6 sheets/month, was partially built out back in 2017, before problems with the TFE put the company’s OLED business with Apple on hold., The build out for E6-3 will add 15,000 sheet/month capacity, a duplicate of E6-1 and E6-2, increasing the total capacity to 45,0000 sheets/month. LG Display has already ordered encapsulation equipment for the new line in Paju and is expected to order shorter delivery schedule tools in 1Q 2021.
The added cost of E6-3 is ~$860m, given that the 2 Tokki deposition tools are already in place. Production is scheduled to begin in 2022, but the new line could be running in 2021 given the experience gained from E-1 ad E-2. If the E6-3 line is in operation by August of next year, it would add about 9m or 10m 6.7” panels (unyielded) to the production. 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. LGD will be sharing Apple’s business with Samsung and BOE. After some qualification failures, BOE recently qualified to be Apple’s 3rd flexible OLED display supplier.
LG shipped ~5m units to Apple last year and are expected to supply ~20m displays this year and more in 2021. To service the demand, LG Display is building out the 3rdphase of its E6 Gen 6 OLED fab to provide additional capacity, primarily to Apple.
E6 has a capacity 30,000 Gen 6 sheets/month, was partially built out back in 2017, before problems with the TFE put the company’s OLED business with Apple on hold., The build out for E6-3 will add 15,000 sheet/month capacity, a duplicate of E6-1 and E6-2, increasing the total capacity to 45,0000 sheets/month. LG Display has already ordered encapsulation equipment for the new line in Paju and is expected to order shorter delivery schedule tools in 1Q 2021.
The added cost of E6-3 is ~$860m, given that the 2 Tokki deposition tools are already in place. Production is scheduled to begin in 2022, but the new line could be running in 2021 given the experience gained from E-1 ad E-2. If the E6-3 line is in operation by August of next year, it would add about 9m or 10m 6.7” panels (unyielded) to the production. 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. LGD will be sharing Apple’s business with Samsung and BOE. After some qualification failures, BOE recently qualified to be Apple’s 3rd flexible OLED display supplier.
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