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In addition, Samsung, another key player in South Korea, has been closing down its 7th-generation line factory and two 5th-generation line factories for three consecutive years. The company is now focusing on building two large-scale OLED panel factories. In 2017 alone, Samsung allocated $8.8 billion to expand production capacity, converting some LCD screen factories into organic display facilities.
In July this year, LGD also announced plans to build a new joint venture OLED panel plant in Guangzhou, with an investment of around 180 billion yen. This will be LGD’s first large-scale OLED factory in China, and it is expected that issues such as OLED cost and production capacity will gradually be resolved.
It’s clear that Korean manufacturers are accelerating the phase-out of smaller and medium-sized LCD panels, and the shift toward OLED is becoming increasingly evident. However, this has led to a tighter supply of small and medium-sized LCD panels, especially for mobile phone displays, which are facing even greater shortages.
Currently, only a few companies like AUO, Innolux, Caijing, and Huaying still operate four, five, and six-generation small and medium-sized panel plants. While the competition between LCD and OLED is intensifying, it remains unclear who will dominate in the short term.
Industry analysts suggest that the life cycle of LCD TV business could last at least 5–10 years. Especially in the large-size TV market, LCDs are still booming due to limited OLED production capacity and high prices. Meanwhile, several upstream LCD panel companies in China remain optimistic about large-size LCDs and have started investing in new factories. As a result, domestic panel makers are likely to seize new opportunities.
At present, LCD panels cannot disappear overnight, nor can OLEDs immediately become the dominant technology. However, over the next 5–10 years, the color TV display industry is expected to undergo significant changes. Still, any advanced technology needs strong content support to truly thrive.
LG, Samsung have given up on LCD main push OLED panel
As the leading player in the global color TV upstream panel industry, LG Display has already shut down its 3.5-generation plant. In the near future, its five-generation plants will also be closed, and the four-generation facilities are expected to be phased out by the end of the year as the company fully shifts focus to OLED technology. LGD stated: "We do not plan to invest further in liquid crystal panels. If high-end customers want high-resolution products, we will only produce them on a small scale."