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Musing on Production
 
LG’s Guangzhou Still Not Ready for MP
February 23, 2020
​ 
Industry sources said on Feb. 18 that the Guangzhou OLED factory, which LG Display announced would begin to mass-produce in August last year, has not yet set the start of MP. The plant has been running test operations for seven months since it stopped mass production with production yields lower than a desired level. LG Display's OLED panel supply has been only half of its plan. Although late last year, 130,000 OLED glass plates should have been produced a month at the Paju plant in Korea (70,000 units per month) and the Guangzhou plant in China (60,000 units per month), the remains at 70,000 units a month. While demand has not reached expectations for production of 6.5m displays annually, it is still above the resent level of 3.5m/year. Concerns over disruptions in large OLED panel supply are emerging in the market.  This year, U.S. Vizio, Chinese Xiaomi, and Japanese Sharp is expected to ramp up demand for large OLED panels by joining 15 other TV companies that already adopted large OLED panels including LG Electronics. LG Display plan to begin mass production at its Guangzhou plant in the first quarter of this year may be delayed, because of the COVID-19. Some Korean engineers who had been dispatched to the Guangzhou plant returned to Korea.

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