By Kim Yoo-chul
Staff Reporter
PAJU, Gyeonggi Province ― LG Display plans to make an additional investment in its latest eighth-generation liquid crystal display (LCD) line amid growing signs of tight supply in the industry.
The expansion plan is expected to provide further room for the world's No. 2 LCD panel supplier to continue its leadership in the market at a time when the global panel industry is seeing an early recovery after a years-long slump due to weak prices and meager demand for consumer electronics.
"More details over the additional investment will come out soon. But that's dependent on the market situations," head of the company's Panel Plant 8 Koo Do-hoi told reporters at the LCD complex last week.
"The global LCD industry is growing by an average 10 percent every year. Therefore we should secure at least an annualized 10-percent production growth to maintain and catch up with the market demand," the vice president added.
LG Display's eighth-generation LCD plant, which cost 3.1 trillion won, is currently being upgraded to increase production. Just three months after the initial operation, the facility has reached full capacity, producing 83,000 glass sheets per month.
"The production yield of our plant, therefore, has exceeded over 90 percent," the executive said.
Since 2004, LG Display has invested over 9 trillion won in the display complex, some 40 kilometers north of Seoul. It invested 5.3 trillion won for the seventh-generation LCD line, the company said.
An LCD panel is a key component used in a flat-screen TV. LG Electronics, Dell, Hewlett-Packard, Apple and Toshiba are the key clients for the company.
A shortage of glass substrate for LCD panels means prices are continuing to climb on products fitted with the component.
DisplaySearch, a market research firm, said notebook PCs, monitors and TVs had month-on-month growths of 7 percent, 5 percent and 14 percent, respectively.
Analysts say shipments will increase again this month.
"Considering the current end-market demand and the limited supply of glass substrates, as well as the low panel inventories, we expect the shortage conditions will continue," the research house said in a memo to clients.
yckim@koreatimes.co.kr
