It is understood that LG Display is planning to operate its 8.5-Gen OLED TV fab in Guangzhou on full-scale starting from end of this month. After improving an issue with manufacturing processes that had held LG Display back, LG Display is finally getting ready to produce OLED TV panels after five months removed from the completion. It is heard that the delay in operation of the fab has brought significant amount of burdens on LG Display’s performance.
According to the industry, LG Display has set an internal course of action in order to start operating its fab in Guangzhou at the end of this month.
“LG Display made requests to its main materials and components suppliers to prepare for supplies of their products.” said multiple representatives from the industry.
LG Display’s fab in Guangzhou was completed in August of last year in order to produce 55-inch, 65-inch, and 77-inch OLED TV panels. LG Display has shown its will to lead the large OLED TV panel market by producing up to 90,000 panels by end of this year.
However, there was a setback with production. Normal operation was delayed due to an issue with productivity. In addition, the fact that LCD prices plunged had put on even more pressure on LG Display.
Specific reason why there was a setback has not been confirmed. However, the industry points to the fact that LG Display introduced a new process that was not used before. The industry believes that the new process that was introduced to improve production capacity actually resulted in low production yield and a delay in operation.
It is heard that LG Display made a decision at the end of last year. It decided to remove the new process and apply technologies that are verified and have been used to its fab in Guangzhou.