LG Display “Strategic direction is OLED. Uncompetitive LCD lines are planned to be switched.”

 

In the 2Q earnings release conference call hosted on the 25th July, Kim Sang-don, LG Display CFO, said, “Looking back at the first half of 2018, the market was in a difficult situation due to the slump in prices, the traditional off-peak season and increased display supply from China. We expected the market conditions to be stabilized in the first half of this year from the bad market condition of the second half of last year, but it has continued to decline more rapidly and steeply. However, with starting the second half of 2018, it has been observing that the price is rising since July owing to upcoming favorable seasonality and customer restocking.”

“Although the market situation has changed favorably in the second half of the year, it is different from the past supply and demand cycle because of the uncertainty of forecasts. Moreover, the oversupply and asymmetric competition in the display market are unavoidable.” LG Display announced that it will maintain its conservative strategy in the second half of the year as the unpredictability is still high.

LG Display’s sales revenue in the second quarter of 2018 was KRW 5,611 billion, decreased by 15% compared to the second quarter of 2017. Operating loss in the second quarter of 2018 recorded KRW 228 billion. This compares with the operating loss of KRW 98 billion in the first quarter of 2018 and the operating profit of KRW 804 billion in the second quarter of 2017. The company suffered a large deficit due to a continued and steep decline in panel prices and lower demand in panels following the previous quarter. Although the shipment was increased by 2% QoQ, the selling price per area (m2) was decreased by 4%.

As a positive indicator, the TV panel price fell sharply, but the overall panel price decline was only 1% due to the competitive position of OLED panels. The market is anticipated to turn into positive situation in the third quarter, compared to the first half of the year, since panel shipments are expected to increase with the orders to restock the inventory.

LG Display, which is currently conducting both LCD and OLED business with small and medium sized panels and large area panels, mentioned clearly about its future strategic direction including the direction for the second half of the year as “concentrating on OLED business and focusing on high value of LCD business” in this conference call.

LG Display announced that it will focus more on differentiated LCD features and technologies in the IT sector such as narrow bezel, IPS borderless, and oxide technology, as well as high-value-added products such as larger-size TV panels and commercial displays, considering that a structural oversupply in panels and fierce competition among display makers are expected to continue down the road.

In addition, LG Display will achieve a turnaround to profit in the OLED TV sector in the third quarter of 2018. By making its final decision to invest in its Gen 10.5 OLED panel production line in Paju, Korea, and by starting mass production in the latter half of 2019 at its Gen 8.5 OLED production line now under construction in Guangzhou, China, LG Display will accelerate the expansion of the global large-size OLED market. Furthermore, additional production facilities for OLED 8.5 generation are known to be considered with the plan that the rationalization of LCDs during the year is also to be implemented although there was no direct mention of the timing and specific lines. For the plastic small and medium-sized OLED panel business, which is experiencing difficult times, compared to large area OLED, for which LG is expanding the production capacity in response to increasing demand, it said that they are preparing for future markets with the necessary strategic technologies with the emphasis of mobile and automotive markets. The E6-1 line, which has been mentioned as a production plant for Apple, is expected to begin mass production in the fourth quarter of this year, revealing the possibility of a possible supply of display to the iPhone OLED model in 2018. In addition, demand for OLED panels is increasing in the automobile market, and it is expected that full-scale business will start in the second half of next year. At the current order backlog, it is confirmed that OLED panels are in the late stage of about 10%. This means that much of the work has already been done. Finally, LG Display is well aware of the lack of funding and funding shortfalls over its competitors in relation to its future preparations. The company plans to reduce its capex by about 3trillion won by 2020, with a substantial portion of depreciation and amortization It is possible through internal working capital management and it plans to borrow the rest. LG Display confirmed that it has not reviewed the rights issue several times in the market, and LG Display has thoroughly prepared a variety of OLED portfolios, revealing its commitment to success by differentiating it from its competitors in the area of latecomers.

2018 Annual OLED Display Industry Report_bg

OLED industry report integrates existing OLED annual report, flexible OLED report and solution process OLED report as one report. With analyzing development history of panel makers over the past three years, it provides necessary information in depth for the technologies and development directions of OLED panel makers across the globe.

This report aims at helping customers to develop future direction, business strategy, investment, and trend analysis by illustrating the OLED display from rigid to flexible and solution process in detail with 6 chapters* respectively.
*1) Development Trends of Panel Makers 2) Analysis of Development Direction of Panel Makers Panel 3) Development History Analysis 4) Technology Development Trend and Key Issues 5) Application Status in 2017 6) Market Analysis

Contents

1. Rigid OLED Industry Analysis
1.1 Development Trend of Panel Companies
– AU Optronics
– BOE
– LG Display
– Samsung Display
– Tianma
1.2 Development Trend Analysis for Panel Companies
– BOE
– Tianma
– LG Display
– Samsung Display
1.3 Development Trend Analysis
– Size
– Resolution
1.4 Technology Development Trend and Key Issues
– Full-screen
– High Resolution
– OLED TV 8K
1.5 Application Status in 2017
– Number and Size of released Products (smart phone)
– size(smart phone)
– ppi(smart phone)
– DA(smart phone)
– OLED TV
– Tablet PC와 monitor(note book)2. Flexible OLED Industry Analysis
2.1 Development Trend of Panel Companies
– AU Optronics
– BOE
– EverDisplay Optronics
– Tianma
– Japan Display
– LG Display
– Samsung Display
– Visionox
2.2 Development trend Analysis for Panel Companies
– AU Optronics
– BOE
– EverDisplay Optronics
– Tianma
– Japan Display
– LG Display
2.3 Development History Analysis
– Size
– Resolution
– DA(smart phone)
2.4 Technology Development Trend and Key Issues
– Substrate
– Bottom protective film
– TFT
– Encapsulation
– Touch screen panel
– Polarizer
– OCA
– Cover window
2.5 Application Status in 2017
– Number and Size of released Products (smart phone)
– size(smart phone)
– ppi(smart phone)
– DA(smart phone)3. Solution Process OLED Industry Analysis
3.1 Development Trend of Panel Companies
– JOLED
3.2 Development Trend Analysis for Panel Companies
– JOLED
– AU Optronics
– BOE
– TCL(CSOT)
3.3 Development History Analysis
– Size
– Resolution
3.4 Technology Development Trend and Key Issues
– Jetting formation
– Process Environment
3.5 Application Status in 2017

4. OLED Revenue Analysis by Year
4.1 Overall Market
4.2 Market by Application
4.3 Market by Substrate
4.4 ASP

5. OLED Market Forecast
5.1 Overall Market
5.2 Market by Application
5.3 Market by Country
5.4 Market by Substrate
5.5 Solution Process OLED Market

There may be minor changes in the schedule.

2018 OLED Panel Industry Report_bg

UBI Research published ‘2018 OLED Panel Industry Report’ on February 12, 2018, which analyzes the indicators of OLED industry for the year of 2017.

This report seems very helpful to forecast OLED industry, which is most likely to become the main display in future, since it analyzes panel makers’ development trends, key issues, applied products, and relevant markets from various perspectives on rigid and flexible OLED as well as solution processed OLED.

In the report, the status of OLED products in 2017 is summarized into various applications such as smart phones and TVs, and the trends of newly released products and related issues can be identified.

According to the report, a full-screen smart phone, which has become a trend in recent years, can mainly be applied to flexible OLEDs, while rigid OLEDs using COG (chip on glass) are required to ensure module space at the top and bottom side. Therefore, it is expected that panel makers will implement full-screen as a notch type rather than a current rectangle type to improve the added value, and demand of rigid OLED, which is on the decrease.

Meanwhile, UBI Research predicts that shipment for rigid OLEDs will be 270 million units and that for flexible OLEDs will be 230 million units in 2018, generating sales of US$ 12.5 billion and US$ 23.9 billion, respectively.  Also, analysis shows that the solution process, capable of manufacturing large-area OLED panels with RGB structure without cutting mother glass at Gen 8 or higher generation, will be adopted at the mass-production from 2019. Consequently, 2 million units of solution processed OLED will be shipped in 2019 and 9.2 million units will be shipped in 2022.

<Flexible OLED shipment forecast>

 

Contents

1. Rigid OLED Industry Analysis 
1.1 Development Trends of Panel Makers
1.2 Analysis of Development Direction of Panel Makers
1.3 Development History Analysis
1.4 Technology Development Trend and Key Issues
1.5 Application Status in 2017
1.6 Rigid OLED Market Analysis

2. Flexible OLED Industry Analysis
2.1 Development Trends of Panel Makers
2.2 Analysis of Development Direction of Panel Makers
2.3 Development History Analysis
2.4 Technology Development Trend and Key Issues
2.5 Application Status in 2017
2.6 Flexible OLED Market Analysis

3. Solution Process OLED Industry Analysis
3.1 Development Trends of Panel Makers
3.2 Analysis of Development Direction of Panel Makers
3.3 Development History Analysis
3.4 Technology Development Trend and Key Issues
3.5 Application Status in 2017
3.6 Solution Process OLED Market Analysis

There may be minor changes in the schedule.

2017 OLED Encapsulation Annual Report_bg

OLED Encapsulation, TFE is the Top Trend

  • Expected application of TFE to all edge type and full screen use flexible OLED
  • PECVD manufacturing equipment, 62% of total encapsulation manufacturing equipment market

According to 2017 OLED Encapsulation Annual Report published by UBI Research, of OLED encapsulation technology, TFE (thin film encapsulation) will be applied to approximately 70% of total OLED panel in 2021, and become the key encapsulation technology.

OLED display trend is heading toward minimizing bezel for full screen actualization from edge type, and flexible OLED is being considered as the most optimal display for full screen. As such, Chinese panel companies, as well as Samsung Display and LG Display, are concentrating on flexible OLED mass production line investment rather than rigid.

Flexible OLED must be thin and bendable; glass using frit encapsulation Is not suitable and TFE (thin film encapsulation) or hybrid encapsulation must be applied. TFE is a structure that is formed via laminating thin inorganic and organic materials. In the early stages of development, it had 11 layers of complex organic and inorganic material deposition with low yield. However, it now has been reduced to 3 layers and greatly improved productivity, yield, and cost and it is being applied to most of flexible OLED.

<Thin film encapsulation development history, 2017 OLED Encapsulation Annual Report>

Hybrid encapsulation, which uses barrier film, is being applied to some flexible OLED. However, due to the high cost of barrier film and relatively thick thickness, recent investment is focused on TFE application.

According to UBI Research analyst Jang Hyunjun, TFE encapsulation is expected to continue to be applied to edge type and full screen type flexible OLED panel, and related manufacturing equipment and material market will carry on their growth.

The report explains that TFE’s key manufacturing equipment are inorganic material forming PECVD and organic material forming ink-jet printer. In particular, PECVD is used in inorganic material film formation of hybrid encapsulation as well as TFE. Therefore, PECVD market is estimated to record US$ 6,820 million in 2017-2021, and occupy approximately 62% of the total encapsulation manufacturing equipment market.

<PECVD manufacturing equipment market volume, 2017, 2017 OLED Encapsulation Annual Report>

The report includes encapsulation related key manufacturing equipment and material market in addition to encapsulation development history and trend, and key panel companies’ trend.

Coverage

1. Encapsulation 개발 동향(Frit Glass Encapsulation, Thin Film Encapsulation, Hybrid Encapsulation)

2. Encapsulation Supply Chain 분석(LG Display, Samsung Display, 기타)

3. 주요 OLED panel 업체 동향(AU Optronics, BOE, CPT, CSOT, JDI, LG Display, Samsung Display, TIANMA, Visionox)

4. Market Trend

  • 전체 Encapsulation 시장 분석 기간: 2017 – 2021
  • 분석 컨텐츠 : Encapsulation 기술별 OLED 시장 전망(Total Shipment, Total Revenue, Frit Glass Type OLED, Hybrid Type OLED, TFE Type OLED)
  • Encapsulation 장비 시장 전망(개요, Total 장비 시장, PECVD 장비 시장, Ink-jet 장비 시장, Laminating 장비 시장, 검사, 측정 장비 시장, FA, 기타 장비 시장)
  • Encapsulation 소재 전망 시장(개요, Glass 시장, Frit Glass 시장, TFE용 Organic 재료 시장, Invar 봉지재 시장, Adhesive 재료 시장)

Contents

1. Executive Summary 

2. Encapsulation Outline
2.1 Encapsulation Definition
2.2 Encapsulation Requirements
2.3 Encapsulation Categorization
2.4 Encapsulation Process

3. Encapsulation Development Trend    
3.1 Frit Glass Encapsulation
3.2 Thin Film Encapsulation
3.3 Hybrid Encapsulation

4. Trend Analysis of Key OLED Panel Companies
4.1 AU Optronics
4.2 BOE
4.3 CPT
4.4 CSOT
4.5 JDI
4.6 LG Display
4.7 Samsung Display
4.8 TIANMA
4.9 Visionox

5. Encapsulation Supply Chain Analysis
5.1 LG Display
5.2 Samsung Display
5.3 Others

6. OLED Market Forecast by Encapsulation Technology
6.1 Total Shipment
6.2 Total Revenue
6.3 Frit Glass Type OLED
6.4 TFE Type OLED
6.5 Hybrid Type OLED7. Encapsulation Manufacturing Equipment Market Forecast    
7.1 Outline
7.2 Total Encapsulation Manufacturing Equipment Market
7.3 Encapsulation PECVD Manufacturing Equipment Market
7.4 Encapsulation Ink-jet printer Manufacturing Equipment Market
7.5 Encapsulation Laminating Manufacturing Equipment Market
7.6 Encapsulation Inspection, Measurement Manufacturing Equipment Market
7.7 Encapsulation FA, Others Manufacturing Equipment Market

8.Encapsulation Materials Market Forecast
8.1 Outline
8.2 Encapsulation use Glass Market
8.3 Frit Glass Market
8.4 Thin Film Encapsulation use Organic Material Market
8.5 Invar Metal Foil Market
8.6 Encapsulation use Adhesive Material Market

There may be minor changes in the schedule.