LG Display Co., Ltd. LPL, the South Korean electronics giant, disclosed a KRW1.84 trillion investment in the construction of a new panel plant in Paju, Gyeonggi Province in Korea. This new facility will facilitate the production of next-generation organic light-emitting diode (‘OLED’) panels owing to an expected rise in demand of the same in coming years.
The new facility will be known as P10, in which, LG Display will mainly develop large-size OLED TV panels as well as flexible OLED panels for smartwatches and automotive displays. Notably, the total investment made by the company encompasses the construction of the foundations for clean rooms, infrastructure for water and power supplies along with the P10 building. Overall, the construction is expected to start in the first half of 2016, while the first production line is scheduled to start mass production in the first half of 2018.
As a matter of fact, LG Display projects the total investment in the P10 plant to exceed over KRW10 trillion. Moreover, the company is aiming at gradually increasing the scale of the production line, considering market conditions.
We believe the abovementioned event is a strategic fit for LG Display, given the strong prospects of the OLED Display market. As per the market research firm, IHS, the global OLED panel market is anticipated to rise from $8.7 billion in 2014 to $29.1 billion in 2022. As per geographies, Korea, China, Japan and Europe have thriving markets for OLED TV models owing to increased adoption. Apart from this, there is also a rise in demand for flexible OLED panels across smartwatch and automotive display sectors.
LG Display has always been the biggest proponent of OLED and presently offers OLEDs for the Apple Watch of Apple Inc. AAPL. Earlier in August 2015 too, LG Display decided to escalate its investments for grabbing a lion’s share of the untapped OLED market. We believe on the back of such vigorous and dedicated efforts, LG Display can break all odds and emerge as a leader in the OLED market.
LG display currently carries a Zacks Rank #2 (Buy). A couple of other well-ranked stocks in the same sector are Immersion Corporation IMMR and Harman International Industries, Incorporated HAR, having the same rank as LG Display.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment