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In addition, South Korea's major tech giant Samsung has been closing its 7th-generation line factory and two 5th-generation factories for three consecutive years. The company is now focusing on building two large-scale OLED panel manufacturing facilities. In 2017 alone, Samsung allocated $8.8 billion to expand production capacity, converting some LCD screen factories into organic display factories.
In July this year, LGD also announced the establishment of a new joint venture OLED panel factory in Guangzhou, with an investment of approximately 180 billion yen. This will be LGD’s first large-scale OLED factory in China. Once operational, challenges such as OLED cost and production capacity are expected to gradually be resolved.
It’s clear that Korean manufacturers are accelerating the phase-out of smaller and medium-sized LCD panels, signaling a strong push toward OLED technology. However, this shift has led to a tight supply of small and medium-sized LCD panels, especially for mobile phone displays, which are becoming even more scarce.
Currently, only four, five, and six-generation plants for small and medium-sized panels remain in operation, with only a few companies like AUO, Innolux, Caijing, and Huaying still active. Although the competition between LCD and OLED is intensifying, it remains difficult to predict a clear winner in the short term.
Industry analysis suggests that the life cycle of LCD TV business could last at least 5 to 10 years. Especially in the large-screen 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 manufacturers are poised to seize new opportunities.
LCD panels are not going away anytime soon, and OLEDs won’t immediately dominate the market either. However, over the next 5 to 10 years, the color TV display industry is expected to undergo significant changes. That said, any superior technology still needs supporting content to truly thrive.
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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, the company plans to close its five-generation facilities as well, and the four-generation plants will also be phased out by year-end, with a full shift toward OLED development. LGD stated: "We have no intention of investing further in liquid crystal panels. If high-end customers require high-resolution products, we will only produce in small quantities."