LG Display has decided to extend production of LCD TV panels until next year when it initially decided to stop the production this year because the global LCD market has rebounded sharply due to the COVID-19.
According to the industry on Wednesday, the company has decided to extend the production for one more year and it is reported that it informed its partners and other related companies about its plan.
During its performance conference call back in January, the company announced that it would stop domestic production of LCD TV panels by the end of this year. “We ended domestic production of Gen-8 LCD TV panel production at the end of last year.” said LG Display during the conference call. “We will also stop domestic production of other widely-used LCD TV panels by the end of this year and focus on manufacturing IT, automotive, and commercial products from our plants in South Korea.”
The reason why LG Display decided to end domestic production of LCD TV panels is because it wanted to gradually shift business towards OLED. As Chinese display manufacturers have continued to pour in low-priced LCD products in the global LCD market, LG Display decided to shift its business towards OLED that is a high value product.
However, the COVID-19 pandemic changed LG Display’s decision. As more people have begun to spend more time at home due to the coronavirus that has led to increased demands for home entertainment systems and increased TV sales, the global market has improved greatly. As a result, LG Display decided to adjust its initial plan.
In fact, LCD TV prices have been surging lately. According to a market research company TrendForce, LCD TV panel prices have shot up 30% in the third quarter as the contact-free culture has become a norm in many people’s daily lives. On top of that, Samsung Display withdrawing from its LCD business is causing lack of supplies compared to demands.
It is reported that LG Display will extend the domestic production of LCD TV panels for one more year and make a decision on domestic production after the extension.
Staff Reporter Yun, Geonil | email@example.com