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According to industry news on the 19th, LG shows that consideration is being given to the 4.5 generation flexibility that will be located in Pochow, Kyiji Province.E2 plant closed. It is said that production may stop this year.
E2 is LG display's first small and medium-sized flexible OLED production plant with a capacity of 20K per month. It mainly produces OLED panel for smart watches, and also produces smart watches.cellphoneWith flexible OLED panel, only smartwatch panels have been produced recently. E2 factory has three production lines, but at present only one production line is produced.AppleWatch panels.
The E2 production line began to crop in 2013, and there has been a problem of low production efficiency. Because competing companies mainly produce smartphones on sixth-generation lines, OLED,LG shows that they lag far behind in production costs and product supply speeds. Even after the early start of the E5 plant, E2 is producing panels for smartphones supplied at home and abroad.
The industry said LG showed that it was ready to stop E2 production. Because two of the three production lines stopped the crop movement, the remaining one had no other products except the Apple watch panel.
The LG display is also considering the transfer of part of the E2 equipment to the E5 plant. The ltpo tft device used for the first time in apple's watch is also scheduled to be transferred to e5 to continuously correspond to the customer's needs. E5 is a factory for producing an OLED panel for on-board and smart phones.
LG display is faced with the problem of how to improve the efficiency of small and medium-sized OLED. The large size OLED business began to generate revenue last year and is expected to turn losses into profits this year.
And the small and medium-sized OLED business has a large loss every year. Although smart phone and smartwatch panels are being supplied to domestic and foreign manufacturers, while sales continue to grow, operating profits continue to lose, with losses of 100 billion won when less and 4000 to 500 billion won at most times.
Converted to adulthood, the small and medium-sized OLED business alone has a loss of nearly 1 trillion won. In order to improve the efficiency of production and reduce the loss margin, although E2 production line income is needed, in order to improve the efficiency of plant operation, strategic judgment is needed.
Industry stakeholders said that "LG display is facing a difficult situation, and even that LG shows that it needs to give up the small and medium-sized OLED business and focus on large-size OLED." E5 has achieved a certain degree of production stabilization, E6 factory has ensured the number of customers in North America, has laid a certain foundation for growth. Now, to re-examine the operation strategy of inefficient production line and improve the results of the main factory is a task that has to be faced at present.
"the E2 plant is indeed considering several options and operational strategies, but no specific decisions have yet been made on the schedule and direction," LG said.
Contribution/CINNO Research Industry Information