LG Display halts production of LCD panels in Korea

South Korea’s LG Display said it plans to halt the production of its liquid-crystal display (LCD) TV panels in South Korea due to intensifying competition.
LG Display for television
The Apple supplier expects the decision to halt production of LCD TV panels at its factory in Paju, north of Seoul, would not have impact on its normal business activities, LG Display said in a regulatory filing.

The panel maker has scaled down its loss-making LCD TV panel business, with a goal of discontinuing domestic production as early as possible. It has also said it will reduce production in China in a phased manner.

For the July-September period, LG Display reported operating loss of 759.3 billion won ($584.9 million), compared with an operating profit of 529.3 billion won a year ago. Sales fell 6.3 percent to 6.77 trillion won during the same period.

Kim Yang-jae, analyst at Daol Investment & Securities, forecast OLED panels will make up for more than 60 percent of LG Display’s revenue by 2023, up from less than 40 percent in 2021.

Samsung Display, Samsung Electronics’ display unit, had scaled down its LCD TV panel business since mid-2010 and stopped production in June.