LG plans to stop producing LCD TV panels in South Korea due to increased competition. LG Display said it does not expect the decision to stop producing LCD TV panels to have an impact on its normal business activities.
There were rumors that LG Display would close its P7 plant, the only remaining large liquid crystal display (LCD) panel manufacturing base in South Korea.
LG Display said that product shipments failed to meet initial targets due to the New Crown Pneumonia outbreak. In response to deteriorating display industry conditions, LG Display has decided to stop producing low-margin LCD panels for the Korean TV market. Its Chinese LCD plant also decided to convert part of its TV panel production line to IT equipment.
LG Display lost a total of 1.2 trillion won (approximately 6.54 billion RMB) on an operating basis in the second and third quarters due to increased competition, especially from China, and lower demand for large LCDs.
It was previously reported that LG Display’s Paju P8 plant will only be used to produce LCD IT panels, while the Guangzhou plant in China will still produce LCD TV panels, but the latter’s production capacity will be reduced by 40%. In addition, the industry speculates that the P7 plant will be used to produce OLED TV panels, which will be put into mass production in 2026 at the earliest.
