lg lcd panel issues manufacturer

LG Display Co., a major South Korean display maker, is expected to stop producing liquid-crystal display panels for TV by the end of this year at the earliest, industry sources said Monday, amid falling profitability and fierce competition from Chinese rivals.

The company said in a regulatory filing last week that it was reviewing an end of production at its LCD TV panel factory in Paju, north of Seoul, without specifying the exact date of production suspension.

The panel maker has been scaling down its loss-making LCD TV panel business, with a goal of discontinuing domestic production as early as possible. It has also said it will reduce production in China in a phased manner.

Demand was falling at an "unprecedented level" both for LCD and premium organic light-emitting diode panels, the company said during an earnings call in October, after years of pandemic-driven strong growth for personal IT devices.

Facing mounting challenges, the company has been trying to turn its business around by putting more resources in LCD panels for IT products and high-margin OLED business and expanding its high-value make-to-order business.

Kim Yang-jae, an analyst at Daol Investment & Securities, forecast OLED panels will make up for more than 60 percent of LG Display"s revenue by 2023, up from less than 40 percent in 2021.

LG Display"s fourth-quarter operating profit is forecast to be around 515.9 billion won, according to an estimate by Yonhap Infomax, the financial news and information arm of Yonhap News Agency.

Samsung Display, Samsung Electronics" display unit, had scaled down its LCD TV panel business since mid-2010 and completely stopped production in June.

SEOUL/TAIPEI/TOKYO -- With windfalls from COVID-19 fading, LG Display is grappling with a record loss as sinking demand, supply chain issues and advancements by Chinese rivals threaten its long-term position in the market.

LG Display said Wednesday that group revenue sank 6% on the year in July-September to 6.77 trillion won ($4.72 billion). Operating loss for the quarter totaled a record 759 billion won, in contrast to the profit of 529 billion won from a year earlier.

LG Display has initially intended to halt LCD TV panel production in South Korea by the end of the 2020 while continuing production at its factory in Guangzhou, China.

LG Electronics was especially focused on procuring in-plane switching (IPS) LCD TV panels. LG Display specializes in the technology __ IPS allows for wider viewing angle and color range, as is used in premium LCD TVs.

LG Electronics initially expected that it could procure IPS panels from China’s HKC and Sakai SIO (previously Sharp). But COVID-19 delayed HKC’s ramp up of its H4, 8.6th-generation (2,250mm x 2,600mm) line in China. Sakai SIO in the meantime had difficultly procuring lasses for LCD panel production. Also, for HKC and Sakai SIO, Samsung Electronics is a more important customer than LG. These issues prompted LG Electronics to ask LG Display to extend LCD production.

LG Display produces LCD TV panels at its 7th-generation (1,950mm x 2,250mm) P7 line and 8.5th-generation (2,200mm x 2,500mm) P8 line at Paju. While both lines produce TV panels, P7 makes more of them compared to P8 which focuses on IT panels. Both lines are thought to have production capacities of 120,000 to 130,000 sheets per month.

The higher than expected demand for LCD also played a part in LG Display extending LCD production in Korea. In the third quarter, panel prices increased by 30% from the previous quarter. Price continues to go up.

Not only will P7 and P8 lines extend their production, they may have even higher operations rates than before. LG Display planning to react to demand flexibly.

Samsung Display has previously said it plans to end LCD production by 2020, it continuing to produce them. It has previously said it may extend production from Samsung Electronics’ request. Samsung Display specializes in vertical alignment (VA) LCD panels.

LG Display (NYSE:LPL) is one of the biggest manufacturers of thin-film transistor liquid crystal display (“TFT-LCD”) panels. However, the market for LCDs is experiencing difficulties with not enough demand to offset the increased supply. As a result, prices for LCDs have been falling, which makes it hard for manufacturers such as LG Display to remain profitable. LCD manufacturers have been feeling the heat and it’s not clear that improvement is to be expected anytime soon.

This is a worrisome development for LG investors because displays are the company"s bread and butter. However, LG has come up with a potential solution to its problems in the LCD market that it hopes will revive its fortunes and maybe calm down investors. What that solution is and how likely it is to solve LG’s woes are will be discussed next.

Prospects of a turnaround in the LCD market are low because LCD manufacturers in China such as BOE and CSOT are ramping up LCD production. There are several 10.5G and larger fabs that have recently started production in China or are close to it. With so much capacity coming online, it’s hard to see how LCD prices can recover.

For example, according to Witsview, 32-inch LCD panels are in oversupply for the month of July and prices could even fall below cash costs. The situation is not much better with larger sized panels. Supplies of 65-inch and 75-inch panels will exceed demand due to new production from BOE and CSOT with their 10.5G and 11G fabs. Not only is excess inventory going up, but prices are also trending down.

LG’s response to the situation in the LCD market is to not engage in anall-out price war where it’s not certain that there will be a winner, but to redirect focus towards the LCD alternative known as organic light-emitting diode (“OLED”) displays. To be more exact, LG is focusing on large panels suitable for big-screen TVs because people are still interested in upgrading to bigger TVs that offer superior picture quality compared to older generations.

This is where OLEDs come into play. While OLEDs have a number of disadvantages compared to LCDs, most people find the picture quality of OLEDs to be superior to that of LCDs. For example, OLEDs have much better contrast because they can display the color black in a way that approaches the real thing. OLEDs are able to do this because they can turn off each pixel, which also reduces power consumption.

On the other hand, LCDs have a much harder time with the color black due to their need for backlights, which can result in light bleeding through. The black in LCD displays comes closer to the color gray for this reason. The ability to accurately display black is one of the most, if not the most, important factors in determining how good the picture quality is of a display. If you want the best picture quality in a TV, then OLED is generally regarded as the number one choice as long as you"re willing to pay higher prices.

Since most people tend to highly value picture quality when watching TV, LG’s decision to focus on OLED makes sense. Unlike LCDs, there are not that many giant fabs cranking out OLEDs and the supply/demand outlook for OLEDs looks much better than the one for LCDs. Manufacturers such as LG should be able to better sustain their margins in OLEDs and hence profitability. At least, on paper. TV panels are also the biggest source of demand for LG as the table below indicates. Panel segment 2018

To take advantage of OLED TVs, LG has invested over $4 billion to increase OLED production capacity. LG is currently conducting a test operation of its new 8.5G OLED fab in China with mass production expected to start in August. An LG official has stated to the media that “the operation of the Guangzhou plant will boost the production of glass substrates from 70,000 units per month to 130,000 to 160,000 units per month.”

An additional benefit of the new plant according to the same official is that it’s not subject to the export restrictions that Japan has recently imposed because the factory procures display parts locally. These export restrictions could potentially be a problem for LG in South Korea. But assuming that there are no hiccups with the new plant, LG will be able to drastically increase its supply of OLED TV panels in the very near future.

LG’s strategy looked sound when they first proposed it, but recent developments have cast some doubt on its viability. For starters, Chinese display manufacturers, BOE in particular, are making much faster progress with OLED than previously anticipated. If BOE continues to progress at its current pace, it may be able to flood the market with large OLED panels much quicker than previously thought. The production capacity of OLEDs is still nowhere near LCDs, but it’s something worth watching.

A second problem is a technological one. Chinese LCD manufacturers have come up with a new type of LCD technology. Manufacturers have figured out how to stack two LCD panels on top of each other and bond them together to create a level of picture quality that was previously unobtainable with LCDs. These dual-layer LCDs threaten the very advantage that OLED was relying on to sway customers towards buying an OLED over an LCD.

By bonding two LCD panels together back to back, manufacturers are able to display “real” black in an LCD. Something that is very important for picture quality as previously stated. The drawback of course is that by using two LCD panels instead of one, the cost goes up. In addition, more circuitry and chips are needed, which also raises costs. LCD TVs that incorporate this new technology will therefore be more expensive than traditional LCD TVs.

However, despite the extra cost of producing these new LCD TVs, they’re still expected to be cheaper than OLED TVs. An extra benefit is that since they’re LCDs, they do not suffer the problem of burn-in like OLEDs do. The first TV model using “BD Cell” LCD technology from BOE will be released by HiSense in the second half of 2019. If they can match OLEDs in picture quality at a lower price, then the future of OLED TVs may not be so bright after all.

Last year was not a good year for LG as the company ended the year with a loss. If one U.S. dollar equals 1180 South Korean won, then revenue and loss in 2018 came in at $20.6B and $152M respectively. A sharp turnaround compared to the year before when revenue and profit amounted to $23.6B and $1.6B respectively. Unit: million won 2017 2018

The slide has continued in the first quarter of 2019. LG reported $4.98B as revenue and a loss of $53M in Q1 2019. Considering the fact that panel prices have continued to go down in Q2, it’s almost certain that LG will report another loss for Q2. Hence the need for LG to find a new growth driver that can get the company out of the red. Unit: million won Q1 2019

LG has been banking on OLED TV panels for a turnaround, but that looks more and more unlikely. Instead, LG may get hit by a double whammy. Rival manufacturers in China are making faster progress with OLED and OLED demand may be reduced because LCDs remain a competitive option due to technological innovation.

If OLED is not the answer to its problems in the display market, then there is no reason to go long LPL even though the stock is at multi-year lows. All indications are that the worse has yet to come in the display market. LG will have to find another solution to become profitable again. OLED is unlikely to be it.

LG Display announced its financial results for Q2 2022, with a net loss of around $290 million (down from a profit of around $320 million a year ago) as the company"s sales dropped 14.6%.

LGD says that the loss was due to weak demand for TV and IT displays, coupled with supply chain issues and the lockdowns in China. LGD says it plans to continue and reduce its LCD TV business, and to stop LCD production in Korea in 2023, earlier than expected before. The company will focus instead on OLED TV panels and the automotive market, and will aim to open up new markets for transparent and gaming OLEDs.

Because life waits for no one, at LG USA we create consumer electronics, appliances and mobile devices that are designed to help you connect with those who matter most. Whether that means cooking a nutritious, delicious meal for your family, staying connected on-the-go, sharing your favorite photos, watching a movie with your kids or creating a clean, comfortable place to celebrate the moments that matter, we"ll be there for you every step of the way.

Designed with you in mind, LG products offer innovative solutions to make life good. With intuitive, responsive controls, sleek, stylish designs, and eco-friendly features, our collection gives you the power to do more at home and on the go. It includes:

Explore our complete collection of LG electronics, mobile devices, appliances and home entertainment solutions -- and find everything you need to connes and family, no matter where they are.ct with your friend

Because life waits for no one, at LG USA we create consumer electronics, appliances and mobile devices that are designed to help you connect with those who matter most. Whether that means cooking a nutritious, delicious meal for your family, staying connected on-the-go, sharing your favorite photos, watching a movie with your kids or creating a clean, comfortable place to celebrate the moments that matter, we"ll be there for you every step of the way.

Designed with you in mind, LG products offer innovative solutions to make life good. With intuitive, responsive controls, sleek, stylish designs, and eco-friendly features, our collection gives you the power to do more at home and on the go. It includes:

Explore our complete collection of LG electronics, mobile devices, appliances and home entertainment solutions -- and find everything you need to connes and family, no matter where they are.ct with your friend

Because life waits for no one, at LG USA we create consumer electronics, appliances and mobile devices that are designed to help you connect with those who matter most. Whether that means cooking a nutritious, delicious meal for your family, staying connected on-the-go, sharing your favorite photos, watching a movie with your kids or creating a clean, comfortable place to celebrate the moments that matter, we"ll be there for you every step of the way.

Designed with you in mind, LG products offer innovative solutions to make life good. With intuitive, responsive controls, sleek, stylish designs, and eco-friendly features, our collection gives you the power to do more at home and on the go. It includes:

Explore our complete collection of LG electronics, mobile devices, appliances and home entertainment solutions -- and find everything you need to connes and family, no matter where they are.ct with your friend

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While LG Display isn’t the only manufacturer out there making OLED panels, it’s pretty much the only one that counts when it comes to the size and quality of OLED panels required for today’s TV sets. Reports have recently emerged from multiple sources, though, suggesting that another display manufacturer, BoE, is preparing to start making OLED panels big enough for TV use too.

The well connected people at market research company Display Supply Chain Consultants confirmed on the back of the Display Week showing that BoE really does seem intent on making such large panels on a commercial basis. Assuming that their information is correct (it usually is), it doesn’t require much of a mental leap to think that such a move would spell good news for OLED-loving consumers. After all, more panel suppliers means more competition, which usually in turn means cheaper prices and more innovation.

For starters, don’t forget that BoE’s 95-inch OLED prototype really was a very high-end affair. Its combination of a huge screen and native 8K rather than 4K resolution was joined by a native 120Hz refresh rate, coverage of around 99% of the DCI-P3 colour range, and pretty high peak brightness of 800 nits – the sort of specifications that consumers can currently expect to spend tens of thousands of pounds to secure. LG’s latest ‘mere’ 88-inch native 8K OLED model, for instance, the OLED88Z2, costs a cool £25,000 / $25,000 / AU$60,000 at the time of writing. Even if BoE manages to deliver a king-sized OLED panel cheaply enough to enable TV brands to sell huge OLED TVs for much less than that, it’s safe to say they will still hardly be mainstream propositions.

As OLED-info reports, though, the ‘B5 R&D Line’ in China that BoE is apparently eyeing up for production of its TV-sized panels currently has a very low capacity by today’s panel production standards. It’s certainly not capable of producing anything like the quantities of big-screen OLED panels that a number of LG Display lines can. In fact, its apparent production capacity for large OLEDs appears to be so limited that analysts suspect that BoE likely isn’t even contemplating trying to use it to produce screens for the ‘mass market’, focusing instead purely on the high-end niche.

Actually, if some of the ‘chatter’ surrounding the Display Week show is to be believed, BoE might even struggle to move the premium OLED TV dial, at least in the short term, since while the 95-inch RGBW panel BoE showed apparently impressed in some ways, its overall quality supposedly didn’t feel as if it was yet sufficient for a full real-world roll out. Though I should add that I haven’t found anyone sharing specific examples of the sort of issues the BoE panel allegedly suffered with.

It does appear, on the upside, as if the yield rates of usable panels at BoE’s B5 production line are pretty high, at least. The simple reality, though, is that once you delve even a little behind the eye-catching ‘major new manufacturer eyes big-screen OLED production’ headlines, the prospect of a pitched new battle between two makers of TV-sized OLED panels and the hammering of OLED TV prices that might follow doesn’t look set to become a reality any time soon.

After an OLED TV in 2020? There may be a problem – as LG Display’s new Gaungzhou factory is still months behind schedule, and yet to get its manufacturing line up and running (via OLED-info).

IHS Markit, a global information provider based in the UK, has reduced its forecast for LG’s OLED TV production in the coming year, from 5 million to 4.5 million – and that number could reduce further if problems persist.

What’s the issue? We’re yet to hear from LG Display itself on the continued delay, but the new factory is reportedly employing a number of new technologies designed to improve the efficacy of production – compared to the LG factory in Paju, South Korea – and which may be causing issues.

With new 2020 smart TV ranges starting to be shown off, and LG Display still the only manufacturer producing large-screen OLED panels, any hiccup in the production process could set back the number of sets available worldwide, and lead to shortages in various retailers or territories – or at the very least delay the release dates for various OLED televisions landing this year, most of which have yet to commit to specific days for release.

The history of flat-panel TVs has been written by two fundamentally different technological approaches to creating a TV image: transmissive displays versus emissive displays.

Transmissive displays operate by shining a backlight array through a liquid crystal element. You might know them by their more common names: LCD TVs or LED TVs. Crucially, the light- and color-producing parts of LCD/LED TVs are functionally and physically separate layers. I like to think of the liquid crystal and backlight as the meat and cheese on a sandwich, respectively.

This independent pixel operation (independent from a backlight array and independent from every other pixel) allows emissive displays to greatly maximize contrast and produce richer colors. For example, when an OLED TV needs to display true black in a scene, it just turns those pixels off, whereas an LCD TV needs to find a way to block or turn off the backlight in that area of the screen. This is, in a nutshell, why OLED TVs are special. The ability to produce a true black on such a fine level increases the TV’s contrast (or the difference between the darkest and brightest parts of the image). The high level of contrast in an OLED TV can help your favorite movies and shows look downright jaw-dropping, which makes it an especially good choice to pair with high dynamic range (HDR) content.

As a bonus, because there’s no backlight array, OLED TVs tend to have excellent viewing angles, especially compared to LCD/LED TVs. This means you can watch them pretty comfortably from way off to either side.

Price has been the biggest barrier keeping most folks from having an OLED TV in their living rooms. OLED TVs have consistently carried higher price tags than high-performance LCD TVs—especially at screen sizes larger than 65 inches, where you could expect to pay at least 20% more. And “budget OLED” has never even been a category.

It wasn’t too long ago that manufacturing difficulties and relative scarcity painted a picture of exclusivity for OLED TVs, which kept the price high. While Sony and Samsung were the first to introduce OLED TVs, they quickly exited the market, leaving LG as the only brand selling OLEDs in the US for a time—and in a rather limited array of sizes and configurations. The earliest models had a range of issues, including an odd behavior colloquially called “vignetting” (where the edges of the screen look much darker than the middle), a tendency for darker gray elements to look yellowish-green, and concerns about uneven lifespan expectations among different colors. Those kinks were hammered out years ago, and manufacturers like Sony and Vizio have since joined LG in the US market, though LG Display has been the only company manufacturing the actual OLED TV panels. Yet the prices are still high compared with that of most LCD TVs.

Price isn’t the only consideration, either. OLED TVs are comparably much dimmer than similarly priced LCD/LED TVs. This boils down to operational mechanics: Individually operating pixels, the root of an OLED TV’s strength, can also be a weakness. In emissive displays, turning all the pixels to maximum brightness at the same time can damage the TV. So like plasma TVs before them, OLED TVs use a process called auto-brightness limiting, or ABL. Essentially, as more of the screen becomes bright, the total brightness is automatically limited to ensure safe operation.

In other words, a 2021 OLED TV could only get roughly half as bright as a similarly priced 2021 LCD/LED TV, especially those that use mini-LED backlights. However, it’s important to understand that those brightness numbers are discussed in terms of what’s called “reference brightness,” which describes the general/average light output that you’d notice when watching an OLED TV and an LCD TV side by side. For instance, very bright content that lights up the whole screen, such as a daytime sporting event, will look brighter on a high-performance LCD TV than an OLED TV.

But when considering overall screen contrast—the measure of a TV’s average or peak brightness against its black level, or minimum luminance level—OLED TVs tend to have the best contrast around. Because ABL usually kicks in only when large portions of the screen are bright, an OLED TV’s perceptual contrast (how bright the TV will seem given its black level) is usually much better than that of LCD TVs, especially with HDR content where small, specular areas of the screen are very bright.

However, all that functionality is why it’s important to have control over your room’s ambient lighting if you plan to buy an OLED TV. For example, as much as I love OLED TVs, I don’t have one in my living room—I have a Samsung Neo QLED LCD, which is bright enough to combat the San Diego sunshine that often bathes my home. There’s no point having a beautiful TV if you can’t see it! If you can sufficiently darken your viewing room when you need to, however, there aren’t many TVs that will look better than an OLED.

One other concern that some people have with OLED TVs is the potential for “burn-in” damage, ghostly after-image of content that has been on the screen for an extended period of time. Usually this image retention is temporary, but sometimes it’s permanent. The party line for OLED burn-in is that it shouldn’t occur during “normal” use, and we agree, especially because most modern OLED TVs have pixel-shifting and cell-repair processes built in to ensure that damage doesn’t occur. You can also mitigate burn-in further by lowering your OLED TV’s brightness when it’s convenient. However, if you do watch content with a stationary image (like a news ticker or the heads-up display in a video game) for many hours every single day, you may want to consider getting an LCD TV instead. Ultimately, we think burn-in is only a notable concern for a minor subset of OLED owners.

This year, we’re seeing a few key developments in the OLED market that could help it become a better option for more people. For one, LG and Sony have continued to refine their panels to improve overall brightness, and both are adding more screen sizes to their lineups, including smaller 42- and 48-inch models—which is great for not only gamers but also anyone who just wants a more affordable OLED TV that fits in a modest-sized room. Also, companies like Vizio and Skyworth are selling more affordably priced OLED TVs in the US. (You can read more specifics about the 2022 OLED lines in our guide to the best OLED TV.)

But the OLED news generating the most buzz is that Samsung is returning to the OLED game after almost a decade on hiatus. (Samsung introduced one of the very first OLED TVs back in 2012 but abandoned them shortly thereafter.) The company has a single OLED TV line this year, the S95B Series, but there’s an important caveat: Samsung manufactures its own OLED panels, and S95B TVs have QD-OLED displays, a new variant of OLED. QD-OLED displays combine OLED panels with quantum dots—microscopic nanocrystals more commonly used to pump up the color saturation in the best LCD/LED TVs. Sony also announced a QD-OLED model this year.

Because QD-OLED is brand new, we don’t yet know what benefits or improvements it may offer over LG’s WRGB OLED panels (video) beyond what can be assumed based on the underlying technologies: It should look really good. (We plan to test these new TVs to find out, of course.) The other good news? Samsung has announced pricing for its QD-OLED TVs, and while they’re not the most affordable ones you can buy this year, they also won’t break the bank compared with some of the premium OLED TVs being sold.

On the other hand, it’s too soon to predict how Samsung’s return to the market will affect prices going forward. The relatively approachable price of Samsung’s new QD-OLED model could mean that buying an OLED TV in 2022 is a bit risky. If QD-OLED has better production yields than LG’s WRGB OLED, we could see an entire range of even more competitively priced models in 2023.

Tim, sounds to me like the backlight inverter is going out. You want to definitely check on fuses or continuity of voltage supply lines going to the X Board/s, (your case check the X Board) as well as the LVDS cable. Replace blown fuses, connect broken lines, and resolder loose solders. Check on the capacitors on your boards, they may be either loose or popped. Look for any leakage on the boards (looks like a oily sticky substance) and check the top of the capacitors. they should be flat. Any bulging indicates a failed capacitor, The older LG"s have the backlight inverter power separate from the power supply, and in that case you will require a new LCD Panel. Very costly, if you can even find somebody who has them for sale. The newer LG"s have the inverter connected to the power board. In that case you could try to fix it by replacing the power board. It would be great if besides the model number you could find the Chassis number. It might be possible to get a service manual for you and give you some more specific details for your TV. Hope this gets you started in the right direction. Good Luck.

SEOUL, April 27 (Reuters) - LG Display Co Ltd (034220.KS) saw first-quarter profit plummet far below forecasts and warned of a further drop in panel prices as pandemic-driven demand for TVs, smartphones and laptops fades and competition heats up.

The South Korean Apple Inc (AAPL.O) supplier said it would shift its focus to higher-end products and gradually lower production of more commoditised LCD TV panels where it lacked a competitive advantage over cheaper Chinese rivals.

The LCD TV market shrank by more than 10% in the first quarter and Chinese competitors are pricing their products lower than LG Display"s expectations, Lee Tai-jong, head of the company"s large display marketing division, said on a call with analysts.

"Margins have been squeezed chiefly due to panel price declines and weaker demand, as consumers have already bought many screens during COVID-19 in the past two years," said Kim Yang-jae, an analyst at DAOL Investment & Securities.

The source was not authorised to speak to media and declined to be identified. LG Display declined to comment on client matters. BOE and Apple did not respond immediately to requests for comment.

In the first quarter, prices of 55-inch liquid crystal display (LCD) panels for TV sets fell 16% from the previous quarter while prices of LCD panels for notebooks and monitors dropped by around 7% to 11%, according to data from TrendForce"s WitsView.