LG Display (034220.KS) will invest more than 1 trillion won to upgrade its organic light-emitting diode (OLED) production lines. The company aims to strengthen small- and mid-sized OLED production for smartphones and laptops to capture demand from major customers including Apple.
LG Display said its board of directors on Wednesday approved an investment of 1.106 trillion won ($770 million) in new technology infrastructure to enhance OLED competitiveness and growth foundations. The new investment will be executed from Wednesday through June 30, 2028.
The funds are expected to be used mainly to upgrade small- and mid-sized OLED panel lines at the company's main production base in Paju. Small- and mid-sized OLED panels are used in non-TV information technology (IT) products such as smartphones, laptops, and tablet PCs.
Apple is preparing to launch its first OLED MacBook this year, and the smartphone market is being reshaped around premium models, where memory costs account for a relatively smaller share amid chipflation (rising memory prices). As a result, OLED demand is increasing over liquid crystal display (LCD) panels.
Including this investment, the company plans to execute total capital expenditure (CAPEX) of more than 2 trillion won this year.
