In the large-size LCD panel market, South Korea's Samsung and LG were originally one of the world's largest manufacturers. In recent years, due to the rise of domestic LCD panels, LCD prices have fallen too fast, and Samsung and LG can't hold up. Recently, it was reported that LG would withdraw from the LCD panel market, but the company denied that it wanted to compete differently with Chinese manufacturers and other competitors.
In fact, LG did express the idea of shutting down the LCD business before. Previously, the company proposed to shut down the Korean LCD panel plant by the end of 2020. The Guangzhou panel plant invested in China also considered reducing production capacity or increasing OLED panel production capacity.
However, since the second half of 2020, the LCD panel has changed from the previous falling price to rising price, and LG's attitude has also changed. The LCD factory originally planned to be closed at the end of last year has a way to live, at least now there will be no consideration of shutdown.
In the long run, there will still be a price reduction cycle for LCD panels, but LG has stated that it wants to carry out differentiated competition in the LCD market. Now it is still adjusting the LCD production line. The LCD factory originally used to produce TV will switch to it equipment LCD panels.
In addition,LG also plans to halve the production of LCD battery panels and focus on commercial and large-size equipment with high profits.
LG said that for the long-term concern about the profitability of the LCD panel market, it will ensure its profitability through the adjustment of P7 factories in South Korea and Guangzhou factories in China.
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