LG Display (LGD) is expected to set its 2018 capex higher than rival Samsung Display (SDC) for the first time since 2012 as the company has continued to accelerate the expansion of its flexible AMOLED production lines, Digitimes Research has observed.
LGD saw its capex for 2017 increase significantly from the levels recorded in 2012-2016 due to the kick-off of the first- and second-phase production lines of its E5 6G fab for the roll-out of flexible AMOLED panels. LGD's capex will climb even higher in 2018 as more 6G AMOLED lines from its P9-E6 and P10-E6 fabs will enter commercial production in the year.
SDC, having seen its capex budget hit a relatively high level in 2012 for the implementation of the fourth- to eighth-phase expansion projects of its A3 6G line, is likely to see its capex decline in 2018 after the completion of the expansion projects of its A3 and A4 fabs in 2017.
Meanwhile, Korea's LCD equipment suppliers including Invenia, DMS, Avaco, Jusung Engineering and Viatron Technologies, are expected to benefit from LGD's capacity build-ups for AMOLED panels, Digitimes Research believes. These equipment suppliers generally had received less orders than those landed by other fellow companies cooperating with SDC during 2012-2017 as LGD's annual capex was lower than that of SDC's during the period.
However, China is expected to become a more important market for Korea's LCD equipment suppliers, as Invenia and DMS are expected to begin shipping their dry- and wet-type etching machines and other equipment to BOE Technology, and other companies such as Semes, SFA Engineering are also likely to crank into the supply chain of China's LCD industry.
