Mar 7, 2017: South Korean OLED display manufacturer LG Display will invest US$876million (more than 1 trillion won) in developing assembly lines for OLED display modules in Haiphong, in Vietnam to respond better to the increasing demand for OLED displays in the global market.
Initially LG spent 120 billion won in building its Vietnamese headquarters, and laid foundations for the construction of the assembly lines in May 2016.
The company also raised 680.7-billion-won funds through state-run agencies and private financial institutes. When LG Display secures its planned 200-billion-won funds in 2017, the total investment for the construction project in Vietnam will reach more than 1 trillion won.
The OLED assembly lines will be build with the funds, and the company will also raise additional funds, if needed in future.
The OLED assembly lines will be completed in April 2017, and the assembly lines will start producing OLED display modules from July 2017. The Vietnamese assembly lines will be LG Display’s first overseas complex to produce OLED.
Building the facilities in Vietnam also aims at reducing labor costs and avoiding risks coming up from the Chinese government’s hostile economic policies toward Korean companies. The company anticipates that the Chinese government would levy hefty taxes on Korean display manufacturers with the aim to promote domestic OLED display makers.
LG Display currently operates two manufacturing plants for OLED displays in the Korean cities of Paju and Gumi.
Leading TV and smartphone manufacturers are increasingly adopting OLED displays for electronic products and mobile devices.