LG Display has decided to invest KRW10 trillion (US$8.63 billion) over the next three years to expand its AMOLED production capacity, mainly to set up P10 factory which can house more than six AMOLED production lines, according to Digitimes Research.
With the first phase to begin operations in the second half of 2018, P10 will become the world's largest production base for AMOLED TV panels, Digitimes Research indicated.
The investment includes KRW1.5 trillion to set up a 6G AMOLED production line with monthly capacity of 7,500 substrates, producing flexible AMOLED panels for use in automotive displays and smartphones.
LG Display's total AMOLED production capacity in 2018 will be 3.62 times the level in 2015, with 72% of the additional capacity to be used to produce OLED TV panels and 28% flexible AMOLED panels for automotive displays and smartphones.
LG Display has significantly hiked yield rates for OLED TV panels and AMOLED displays can offer market segmentation from TFT-LCD panels to secure profitability. The TFT panel market is facing strong competition due to large expansion of 8.5G capacities in China.
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