By BizLED Bureau
August 19, 2015: LG Display said it will now focus on the development of OLED TVs, and will channel future resources to its development as a strategy to stay ahead of the Chinese competitors that are catching up rapidly in the LCD sector, but they are yet to catch up in the OLED domain.
LG, the supplier to Apple, said that it will spend US $8.4 billion over the next three years on display technologies including OLED. These investments in OLED will help LG to make flexible displays and high-end LCD screens. LG Display said that the size for each display would depend on market demand.
Industry experts are surprised by this move as LG bleeds heavily in its OLED business, despite being the only OLED TV manufacturer in the industry. Yet, LG insists on investing on OLED TV technology. But LG is optimistic that its investment will pay off, since the OLED market has immense growth potential than the LCD market, where growth has stagnated.
DisplaySearch estimates the OLED market will jump threefold to $28.3 billion in 2022 from $8.7 billion in 2014. LG Display also estimates the OLED business to be profitable in the next two years.
The major challenges faced by OLED manufacturers are its low yield rates and high production costs. However, there are several advantages of using OLED panels; is does not require additional backlight, and it has flexible properties.
LG has chosen OLED technology to have an edge over Chinese companies, who are catching up with South Korean makers in the LCD market, but there is still a gap in OLED.
South Korean electronics companies have overtook Japanese companies to become the world?s largest supplier of flat panels in early 2000s. However, government support has helped Chinese companies narrow the gap with South Korean companies? leading position.
By 2020, Chinese display manufacturers are projected to amount to 27% of global LCD production, up from 16% in 2015, according to LG Display.