LG pushes back OLED TV mass production to 2013

By Kim Yoo-chul

LG has put its plans for commercializing organic light emitting diode (OLED) televisions on hold due to unresolved technological issues. Setting consumer prices at reasonable levels also appears to be a difficult challenge.

The group’s consumer electronics arm, LG Electronics, had originally planned to introduce 55-inch OLED sets, which provide sharper pictures than conventional liquid crystal display (LCD) flat screens with lower power consumption.

LG Display Chief Financial Officer James Jeong, (CFO), whose firm provides flat-screen panels to its sister company, confirmed there are no plans for mass producing OLED screens this year.

``The mass production of the displays is unlikely, although the design of the panels will be finished and unveiled this year,’’ he said.

Although an LG official told technology website CNET that plans for launching OLED televisions this year haven’t changed, Jeong said; ``There is a possibility of making prototype products on a limited volume. But we won’t be providing a stable supply of OLED screens for televisions until next year after solving remaining technology issues."

LG Electronics, the world’s second-largest maker of flat-screen televisions behind domestic rival Samsung Electronics, owns 37.9 percent of LG Display and the two companies have been hand in hand in attempts to advance toward OLED sets.

Jeong said LG Display has also postponed its investment for W (white) OLED technology, touted for its potential for revolutionizing lighting and televisions systems. He admitted that the company was experiencing difficulties in achieving the desired manufacturing yield.

``Producing W-OLED screens is a difficult process. We have the most important parts down but there are still a few more issues we need to take care of,’’ he said.

``We will employ our next round of investment on W-OLED screens by the first half of next year but the amount of investment has yet to be decided.’’

The company plans to shift its existing eighth-generation display facilities to W-OLED as part of its mid-term business strategy.

Jeong said the company plans to spend to less than 4 trillion won on facilities next year and expects operating profit for the last quarter of this year to exceed 400 billion won.