LG Display's OLEDDoS production plan suffers delays

 LG Display’s OLED-on-silicon (OLEDoS) production plan is facing delays. The company had expected to place orders for equipment needed for production sometime in the third quarter. But sources say LG Display has yet to execute, and a decision is unlikely to be made before December this year.

OLEDoS, as the name suggests, is the deposition of OLEDs on a silicon substrate. This allows the resulting panels to be small but with Ultra HD resolution. These products will be used in mixed reality (MR) and virtual reality (VR) devices. Apple, LG Display's most important customer, has already asked the South Korean display panel maker to develop a 3,500 PPI OLEDoS. The delay in LG Display may have been caused by concerns about when the mixed reality market will open, the sources said.

The company also needs as much as 200 billion won to manufacture OLEDoS production equipment. Equipment for OLED deposition, color filter formation and thin film encapsulation is needed. LG Display may source silicon substrates from SK Hynix. 

Sources said there was disagreement between LG Corporation and LG Display, the holding company of LG Group, on how to proceed with the 200 billion won purchase.

Other companies like potential customers Apple and Meta don't even have mixed reality devices yet, so it's hard to gauge how much demand there is for them.

As of the third quarter, LG Display also recorded a cumulative operating loss of 1 trillion won.

Post a Comment