With the decision of LG Display to build the world's largest display factory P10 into a 10.5-generation OLED panel production line, which has attracted attention from LGD's funding sources and supply of evaporative machine equipment, these two issues may be related to LGD production plans. The key to success or failure.
According to the Korean media the bell, LGD decided to set the investment direction of the P10 factory to the 10.5 generation OLED production line. The production capacity will increase from 30,000 pieces per month to 45,000 pieces per month, an increase of 50%. However, the poor LCD market situation has reduced LGD's profit and increased financial changes, which may affect other investment plans in 2018. And the evaporation machine of large-size OLED panel is exclusively produced by YAS, and the success of the development of the machine will become the key.
In July 2017, LGD decided to invest 20 trillion won (about 18.5 billion US dollars) to develop the OLED business, of which 5 trillion won for the P10 plant. Simply considering increasing the P10 capacity by 50% will inevitably increase the investment amount by about 2.5 trillion won.
In addition, the number of processes for OLED coating on the substrate is higher than that of LCD, which requires more machine equipment, and LGD must also pay the liquidated damages for equipment purchases for LCD. Of the LCD production equipment previously purchased by LGD, only the backplane equipment that can be shared with the OLED process.
However, LGD's LCD business is shrinking. In the first quarter of 2018, it was the first loss in six years. The operating deficit was close to 100 billion won. The annual operating profit estimate for 2018 was also reduced from 5.5 trillion to 6 trillion won. At 4.5 trillion won, the source of investment funds has emerged.
South Korea's financial industry forecasts that LGD will reduce the scale of execution of other investment projects, giving priority to the smooth implementation of the 10.5 generation line investment plan. LGD's planned investment plans include the Guangzhou 8th generation OLED production line and the South Korean Paju 6th generation OLED production line (E6). Recently, it has also considered converting the South Korean 8th generation LCD factory to an OLED production line.
If the funding problem is excluded, the production equipment is also a checkpoint. The evaporation machine is the key equipment for the performance of the left and right OLED panels. The large-size OLED machine is only available from South Korea YAS. LGD South Korea's 8th generation OLED production line (P9) uses three YAS vapor deposition machines. The production line has achieved stable high process yield with a monthly capacity of about 34,000 pieces.
Although YAS has 8th generation line-specific machine technology, 10.5 generation line equipment is the first challenge. The increase in the size of the substrate will cause the middle part to sag, and the industry must try to solve it. Because the OLED panel must heat the RGB organic material under high temperature in a vacuum state, evaporation is performed from the bottom to the top. If the middle portion of the substrate is drooped, the RGB material cannot be uniformly vapor-deposited.
Informed sources said that YAS has overcome the technical problems of various 10.5 generation line machines and hopes to ship to LGD as soon as possible. LGD tentatively scheduled 10.5 generation OLED production line was launched in 2020, but if the commercialization time delay is delayed, it may be postponed to 2021.