LG Display is accelerating its exit from the liquid crystal display (LCD) business to boost profitability.
The company plans to stop producing LCD panels at its P7 plant in Paju, Gyeonggi-do later this year. The factory was established in January 2006 and is still producing LCD TV panels of various sizes. If the factory stops producing LCD panels, the production of LCD TV panels in Korea will stop. Samsung Display has already stopped production of LCD TV panels.
LG Display also plans to cut LCD TV panel production capacity at its factory in Guangzhou, China by about 40 percent.
The company is looking to shift its focus to in-vehicle displays. According to a report by Omdia, a global market research company, LG Display took 91 percent of the automotive OLED display market in the second quarter and ranked first. The automotive OLED display market is expected to grow at an average annual rate of 54.7 percent over the next five years starting in 2022.