OLED Association
  • Home
  • Who We Are
  • Events
    • SID Display Week in 2018
    • OLED Coalition Annual Meeting 2018
    • OLEDs World Summit 2018
    • SID Display Week in 2018
    • SID Display Week 2017
  • Board Members
    • Members
  • Join Us
  • Press Releases
  • Presentation Files
  • Contact OLED-A
  • Evaluation
  • Home
  • Who We Are
  • Events
    • SID Display Week in 2018
    • OLED Coalition Annual Meeting 2018
    • OLEDs World Summit 2018
    • SID Display Week in 2018
    • SID Display Week 2017
  • Board Members
    • Members
  • Join Us
  • Press Releases
  • Presentation Files
  • Contact OLED-A
  • Evaluation
Search by typing & pressing enter

YOUR CART

Musing-Weekly Newsletter

Vertical Divider
Musing on Financials
 
LGD CEO Expects a Return to Profitability in 2020
January 10, 2020
 
LGD’s new CEO, Chung Ho-young, gave a short interview at CES, where he said
 
  • Profitability should return in 2H 2020, conditional on:
    • Guangzhou Gen 8.5 OLED fab moving to mass production in 1Q – We estimate that the fab will be producing 22,500 sheets in 1Q unyielded and 10,625 sheets yielded out of a potential (raw) capacity of 90,000 sheets/month has taken longer than expected to build and optimize
    • Expected improvement in small-mid size OLED display business – 
  • Expect operating profit of 10% in 2020 – Seems to assume both better small panel OLED utilization and yield, and some recovery on LCD TV panel pricing. 
  • LCD oversupply still an issue in 2020
  • Ship 6m large panel OLED displays in 2020 – Close to original estimate of 6.5m vs. 3.3m units delivered in 2019.  The implementation of MMG (Multi-mode glass) is a big variable that can change the total unit number for the year as it allows for more units from the same amount of glass, while also raising efficiency.
  • Foldable in 2H 2020 -- Notebook size – In-folding – Starting at notebook size, which they showed privately at CES is a good strategy as it removes much of the competition. They showed no smartphone foldable displays at CES privately or publically
  • OLED display sales expected to be 40% of revenue in 2020 
  • Display sales to ‘new’ industries to be >30% in 2020 Initial unit volumes will likely be small (high-end vehicles) but developing a relationship with automotive brands has a long-term payoff when such displays become a bit more commonplace. As indicated in the CES write-up, LG supplied the 38” console for the Cadillac Escalade and has a new, close relationship with GM. They also showed what looked to be Boeing concept of windowless planes and multiple OLED displays per 1st class passenger.   

    Subscribe to Musing

Submit

We Would Love to Have You Visit Soon!


Contact Us

Barry Young
​barry@oled-a.org

Neo Kim
​neo@oled-a.org


Sungeun Kim
​sungeun@oled-a.org

Visit us at OLED-A.org



COPY RIGHT  2020 OLED ASSOCIATION. ALL RIGHTS RESERVED DISCLAIMER