With Chinese manufacturers to open the distance LGD voted 53 billion 700 million overweight OLED

South Korea announced at LG day before Display, will officially start for the future of the OLED television business layout, in order to China ahead of competitors is the rapid development of LCD business.

As apple supplier, LG Display plans to inject $8 billion 400 million (equivalent to about 53 billion 700 million yuan) to the popularity of the future of science and technology, including in the next three years to invest in OLED services. The main purpose of LGD is to develop a high order display screen with high elasticity. However, the company did not provide further details, saying only that the size of the display screen will be determined in accordance with market demand.

In the face of deficit financing overweight only to lose

Although the industry still is currently the only manufacturer of OLED TV, and has repeatedly suffered under the condition, LG Display still insisted to continue to invest in the development of OLED TV technology. OLED technology challenges include low yield, high production costs. However, the advantage of using the OLED panel is that it does not require a backlight, and has the characteristics of flexible bending, can produce different appearance of the screen.

LG choose OLED technology, but also hope to open the distance with the Chinese manufacturers. LG Display CEO Han Sangbeom said that Chinese manufacturers in the LCD screen market is catching up with South Korea, but in terms of OLED technology, there is still a gap between the two.

Looking back on the history of the development of the panel industry, South Korean manufacturers such as Samsung, LG, by the help of huge amounts of money, then go beyond the Japanese manufacturers, in early twenty-first Century to become the largest flat panel display suppliers. These displays are mainly used in television, computer screens and mobile devices. However, China market is also part of learning Korean industrial strategy, China government subsidies policy, help Chinese manufacturers to catch up, only big threat to South Korea manufacturers status display. Estimated that in 2020, China's display production is expected to account for 27% of the world, that is, from the current 2015 growth of nearly two times in.

Optimistic about the OLED market is expected to stay ahead of LG

LG for this investment is quite confident, because the OLED market than the growth rate and potential of the LCD display is even greater, especially now the monitor has gradually slowed down the growth. The OLED market is expected to grow three fold over the past 8 years, from $8 billion 700 million in 2014 to $28 billion in 2022, according to the research institute. CEO estimates, OLED industry will start in the next two years by the loss of profit.

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