LGD to Invest Additional 1.6 Trillion KRW in Vietnam... Expansion of OLED Module Line

OLED Module Production Expected to Increase by 30-40%

(Photo by LG Display Vietnam Corporation)

[Asia Economy Reporter Jeong Hyunjin] LG Display is investing $1.4 billion (approximately 1.6 trillion KRW) to expand its organic light-emitting diode (OLED) module line at its Vietnam factory.

According to local media such as Vietnam Finance on the 31st, Haiphong City in Vietnam approved LG Display's plan to invest $1.4 billion in the region to expand OLED facilities. Accordingly, Haiphong City explained that LG Display has become the largest investor in the area with a cumulative investment amount reaching $4.65 billion (approximately 5.4 trillion KRW).

With this investment, LG Display's OLED module production is expected to increase by 30-40%, from the current 9 to 10 million units per month to 13 to 14 million units. The LG Display Haiphong factory assembles various components onto OLED panels produced in Korea and China to create modules. The modules produced in Haiphong are used to manufacture TVs and smartphones.

(Photo by LG Display Vietnam Corporation)

This expansion decision is interpreted as considering the recent growth trend in the OLED market. Market research firm Omdia forecasted that OLED TV shipments will increase by 70% year-on-year to 6.1 million units this year. Accordingly, shipments of large panels for TVs are estimated to increase by 86% to 8.3 million units. As the proportion of OLED products among global TVs is expected to exceed 10% for the first time in the second quarter of this year, indicating growth, panel demand is also expected to rise, prompting the investment.

LG Display is focusing on expanding production capacity not only for large panels but also for small and medium-sized panels. On the 17th, it announced an investment of 3.3 trillion KRW over the next three years to build a new 6th-generation small and medium-sized OLED panel production line in Paju, Gyeonggi Province. LG Display plans to fully operate the new facility in 2024 and increase OLED panel production at the Paju factory from the current level of 30,000 sheets per month to 60,000 sheets.