In July 2017 LG Display announced that it has decided to build a 8.5-Gen (2200x2500) OLED TV production line in Guangzhou. At the end of 2017 LGD got the approval for its new OLED TV fab from the Korean government, and yesterday LG Display announced that the new plant and JV has been approved by the Chinese government.
LG Display is also planning a larger fab than what it planned initially - it now says that maximum capacity will be 90,000 monthly 8.5-Gen substrates (2200x2500 mm). Mass production is planned for the second half of 2019, and initial capacity will be 60,000 monthly substrates.
LG Display currently produces 70,000 monthly 8.5-Gen substrates at its Paju OLED TV fab. Together with the new fab, by the end of 2019 it will be able to ship up to 10 million 55" OLED TV panels on a yearly basis.
Building a fab in China has several advantages - China has lower wages compared to Korea, and the fab is located very close to the very large and important Chinese market. But the main advantage is the government subsidies - according to DSCC this could mean the difference between profit and loss in this fab for LGD. LGD will hold 70% of the new company, and the remaining 30 percent share will be owned by Guangzhou Economic and Technological Development District. The total investment in the new fab will total KRW 5 trillion ($4.46 billion).
