LG Display pushes OLED dominance with reshoring strategy

LG Display pushes OLED dominance with reshoring strategy

최초입력 2025.06.18 11:10:47

LG Display CI

LG Display Co. aims to take the lead in the global organic light-emitting diode (OLED) market via a reshoring strategy, backed by a major investment in next-generation OLED production in South Korea.
“By proactively investing in OLED technology, we will significantly strengthen our competitiveness across the entire product lineup from ultra-large 97-inch OLED TVs to smaller smartphone panels,” the company said as it unveiled a 1.26 trillion won ($911 million) investment in its Paju facilities in Gyeonggi Province on Tuesday. It added that the goal is to “make OLED the mainstream technology in the global display market.”
The core of the investment will go toward acquiring new equipment, with LG Display reported to have recently signed supply agreements with clients for next-generation OLED panels that feature higher resolution and lower power consumption. Most of the investment will be used to acquire advanced equipment for mass production of these panels.
LG Display has steadily invested in OLED development and market expansion over the past several years. As a result, OLED products now represent a larger share across TVs, IT devices, and mobile platforms. The share of OLED in total revenue rose from 40 percent in 2022 to 48 percent in 2023 and hit a record high of 55 percent in 2024. The company’s financial performance has also improved as it shifts towards an OLED-focused business model. LG Display returned to profit in the third quarter of 2024 after posting over 2 trillion won in operating losses in both 2022 and 2023 while recording 33.5 billion won in operating profit in the first quarter of 2025. Analysts project full-year operating profit for 2024 to range from 300 billion to 650 billion won.
This is the first large-scale investment decision by LG Group since the launch of the new Lee Jae-myung administration and is expected to significantly impact the regional economy. Of the total investment, around 700 billion won will be allocated to Gyeonggi Province, including Paju, where local partner companies are expected to benefit from direct spillover effects.
It is also anticipated that the investment will enhance Korea’s manufacturing supply chain. Unlike liquid-crystal displays (LCDs), which require backlighting, OLED displays emit light at the pixel level to offer superior picture quality, thinner designs, and lower power consumption. Their flexibility also makes them suitable for use in cars, robots, and smart appliances but few companies can produce high-quality OLED panels. “The government recently launched a strategic industry fund to support advanced sectors such as displays. If we can align corporate investment and government support, it will reinforce Korea’s display supply chain and industrial leadership even further,” an industry insider said.
The move also represents a strategic response to the rapid ascent of Chinese display makers. LG Display is reinvesting in domestic facilities following the sale of its Guangzhou LCD plant, effectively reshoring its production base. The company aims to differentiate Korean-made premium OLEDs from its Chinese competitors.
In a related move, LG Display filed a patent infringement lawsuit on Friday (local time) against Chinese display maker Tianma Microelectronics Co. in the U.S. District Court for the Eastern District of Texas. The complaint alleges that Tianma infringed multiple LG Display patents related to OLED and LCD technologies.
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LG Display pushes OLED dominance with reshoring strategy

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