LG Display announced its results for Q2 107 - revenues increased 13% from 2016 to KRW6.63 trillion (around $6 billion USD) and net income reached KRW737 billion ($660 million USD). TV panels accounted for 46% of LGD's revenues, mobile devices 22% and desktop monitors and tablets and notebook displays accounted for the rest.
In addition to the earning results, LGD detailed its investment path for OLEDs, as was decided in a recent board meeting. First of all, LGD decided to build a 10.5-Gen (2940x3370 mm) OLED line in its upcoming P10 fab in Paju. LGD will make an up-front investment of KRW2.8 trillion ($2.5 billion USD). The whole fab will require more investments but LGD says it is taking a prudent approach - it will only begin mass production of OLED TVs after stabilizing the technology for these extra large size substrates.
LGD's second new investment will go towards a new 6-Gen flexible OLED line also in Paju. The new line will have a monthly capacity or 30,000 substrates - which will bring LGD's total capacity to 65,000 monthly substrates (this includes LGD's current E2 pilot 4.5-Gen line and 6-Gen E5 line in Gumi and future 6-Gen E6 line in Paju). LGD's annual capacity once the E2, E5, E6 and the new line are in mass production will be enough for 120 million 6" displays.
These investments are on top of previously announced OLED investments, and by 2020 LGD will have invested a total of KRW 15 trillion - or almost $13.5 billion USD. By 2020 Paju will become LGD's major OLED production hub.
In addition to these investments, LGD decided to establish a 8.5-Gen (2200x2500) OLED line in Guangzhou, China, to make OLED TV panels. This fab will be a joint-venture with the local government and LGD will hold a 70% share. The total cost for this fab will be KRW2.6 trillion ($2.3 billion USD). LGD wants to be closer to the Chinese market, which is the largest TV market in the world - and this is the first time a Korean company plans to produce OLEDs outside of Korea.
