LG Display postpones start of mass production of OLED panels in Chinese factory

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LG Display appears to be delaying the mass production of large OLED panels at its factory in Guangzhou, China. That production should have started already originally, but several recent issues mean that the start of production will start later.

The Korean Chosun Business News reports that mass production is expected to start in the third quarter of this year, according to current schedule. Mass production should have started in October last year. Then that became January this year, but that was not achieved either.

Among other things, the problem of achieving good yields would still be a problem. Other factors are now added, such as a slump in demand as a result of the corona crisis. To address the issues, LG Display has sent 170 additional technicians to the factory; they would not have to deal with Chinese quarantine measures and could therefore get to work quickly in the factory.

The factory in Guangzhou can deliver 60,000 plates per month, but that should increase to 90,000 plates by 2021. The question is whether those numbers will be achieved in view of the current market conditions. LG Display originally wanted to deliver a total of more than 6 million OLED panels in 2020, but it is assumed that that number will not be achieved.

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