LG Display is planning to invest $13.3 billion (15 trillion KRW) in building new OLED plant and its equipment in South Korea by end of this year. This is a large-scale investment made since Samsung Display invested into its new A3 plant a year ago. It is expected that LG Display’s partners such as SUNIC System and Jusung Engineering will benefit from this investment.
According to industries on the 24th, LG Display is going to invest $13.3 billion (15 trillion KRW) into constructing new OLED production lines in Gumi and Paju starting from next month. It is going to start making second stage of investment into its small and medium 6th generation flexible OLED line called ‘E5’ in Gumi. This investment will add production capacity of 15,000 sheets per month and it is expected that LG Display will eventually have production capacity of 30,000 sheets per month from E5 by 2019.
It is heard that the size of second stage of investment is almost identical to the size of first stage. It is likely that major equipment that are currently being used such as SUNIC System’s deposition equipment, LG PRI’s TFE (Thin Film Equipment), and Jusung Engineering’s CVD (Chemical Vapor Deposition) equipment will be introduced as they are.
It seems that its investment for E6 line, which will be set up within P10 line in Paju, will be carried out by end of this year and it will add 60,000 sheets per month based on 6th generation board. E6 line, which is located within P9 line in Paju, is currently being built with production capacity of 15,000 sheets per month and is expected to start mass-production in second quarter of 2018.
Although LG Display initially announced that it will make investments that will add production capacity of 30,000 sheets per month to E6 line, it is being mentioned that actual investments will be 60,000 sheets per month. Production capacity of 30,000 sheets per month that was initially announced is for Apple. It is heard that additional 30,000 sheets per month will be used for Google.

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<Panoramic picture of LG Display’s Paju Complex (Picture = LG Display)>

Based on 6th generation panel, LG Display will have production capacity of 75,000 sheets per month just from its E6 line by 2020. In order to extend E6 line, LG Display first purchased two of CANON TOKKI’s deposition equipment and Nikon’s stepper that correspond to 30,000 sheets per month. With additional 30,000 sheets per month, it is currently evaluating performance of deposition equipment from CANON TOKKI and SUNIC System. It is likely that LG Display will start on plant and equipment investment for large 10.5th generation OLED line by end of this year.
According to industries, LG Display discussed with major equipment manufacturers in South Korea and foreign countries about purchasing their equipment for P10 10.5th generation line. It is planning to invest about $2.66 billion (3 trillion KRW), which corresponds to 30,000 sheets per month, and it is heard that it will formally order necessary equipment by end of this year.
LG Display is going to construct this line as an oxide TFT (Thin Film Transistor) line and it is going to produce LCDs first from this line. Its strategy is to respond to demands for large LCDs while securing stable technologies for 10.5th generation boards.
As LG Display is preparing large-scale investments, equipment manufacturers are doing everything to win orders from LG Display. Its major partners such as Jusung Engineering, SUNIC System, Viatron, Top Engineering, DMS, LG PRI, Invenia, and Avaco are seen as major beneficiaries.
“Although LG Display’s profit has been reduced to recent drop of LCD price, it was able to partially reduce financial burden for large-scale investments that will go into next-generation technologies as Apple and Google supported LG Display with its plant and equipment investment.” said a representative of an industry. “Expectations from LG Display’s partners are high as LG Display is scheduled to make investments into 8th generation LCD line in India and 8.5th generation OLED line in China as well.”
Staff Reporter Bae, Okjin | withok@etnews.com