LG Display Co. will invest an additional $1 billion in Vietnam over the next five years to ramp up organic light-emitting diode (OLED) panel output, according to media reports, after selling its large-size liquid crystal display (LCD) plant in China for $1.5 billion.
The leading South Korean display maker was granted approval from Haiphong in Vietnam on Nov. 14 to expand investment in its facility in the port city by $1 billion, AFP and Reuters reported.
The additional investment, if executed, will bring LG Display’s spending in the facility built in 2017 in northern Vietnam to $5.65 billion. It will also expedite its transition into the OLED market, particularly small-to-medium-sized screens suitable for smartphones and other mobile devices.
LG Display has completely withdrawn from the large-size LCD market by selling its plant in China to TCL China Star Optoelectronics Technology Co. (CSOT) for 10.8 billion yuan ($1.5 billion) in September.
In 2022, it closed its LCD plants in South Korea in the face of Chinese rivals’ fast ascent in the sector with cheaper options.
STRATEGIC PRODUCTION HUB
Samsung Display Co., LG’s local rival, is also bolstering its production lines in Vietnam, picked as the two Korean display makers’ production hub to reduce risks stemming from the US-China trade row.
In September, Samsung Display signed a preliminary agreement to build a $1.8 billion OLED plant in Yen Phong Industrial Park, east of Hanoi in the province, according to Vietnamese and foreign media reports.
Samsung also focuses on small- to medium-sized panels used in laptops and tablets.
By Ui-Myung Park
uimyung@hankyung.com
Yeonhee Kim edited this article.
