LG Display announces that it will stop producing LCD LCD TV panels in South Korea.

CTOnews.com, December 24 (Xinhua) South Korea's LG Display said on Friday that it plans to stop producing LCD TV panels in South Korea because of increased competition. LG Display said it did not expect the decision to stop production of LCD TV panels to affect its normal business activities.

CTOnews.com has reported that there have been rumors that LG Display will close the P7 factory, which is the only remaining manufacturing base for large liquid crystal display (LCD) panels in South Korea.

LG Display said that affected by the COVID-19 epidemic, product shipments failed to reach the original target. In response to the deteriorating situation in the display industry, LG Display decided to stop producing low-margin LCD panels for the South Korean TV market. Its LCD factory in China also decided to convert part of the TV panel production line into IT equipment.

Due to increased competition, especially from China, and falling demand for large LCD, LG Display lost a total of 1.2 trillion won (about 6.54 billion yuan) on operations in the second and third quarters.

It had been revealed that the LG Display Pozhou P8 plant would only be used to produce LCD IT panels, while the Guangzhou plant in China would still produce LCD TV panels, although the latter would reduce production capacity by 40 per cent. In addition, the industry speculates that the P7 plant will be used to produce OLED TV panels, which will be put into mass production as soon as 2026.