LG Display (LGD) will invest an additional US$1 billion in Vietnam over the next five years to strengthen operations at its Haiphong OLED module factory, marking a significant step in its transition from LCD to OLED technology.
Expansion signals strategic shift
According to reports from The Guru and Business Post, the Hai Phong City People's Committee has revealed that LGD has secured an investment registration certificate (IRC). The investment will increase the total investment in the Haiphong factory from US$4.65 billion to US$5.65 billion by 2028. The new funding will support stable operations of existing production lines, customer product launches, and maintenance requirements.
Strategic focus on OLED development
While LGD maintains that this investment represents regular operational funding for its Vietnam operations over the next five years rather than production expansion, industry sources indicate that the company will leverage the Haiphong site to accelerate its OLED-centered business transformation.
The strategic shift comes amid challenges in the LCD market, where intense price competition from Chinese manufacturers has eroded profitability. In response, LGD closed its P7 LCD television panel factory in Paju in late 2022 and initiated the sale of its large-size LCD panel and module factory in Guangzhou, China. In September 2024, the company signed a CNY10.8 billion (US$1.5 billion) deal with TCL CSOT, with the transfer expected to conclude by March 2025.
Vietnam's growing role in display manufacturing
LGD's commitment to Vietnam dates back to 2016 when it established its large and medium-sized OLED module factory in Haiphong. The company has steadily expanded its presence, including a significant US$1.4 billion investment in 2021, establishing Haiphong as a crucial production center.
In its home market of South Korea, LGD invested KRW3 trillion (US$2.15 billion) in 2019 at the P10 factory to develop a 10.5-generation OLED production line, enhancing its position in the large-size television market.
Market expansion and future outlook
The company's increased OLED investment aligns with growing market opportunities, particularly as major customer Apple prepares to introduce OLED panels in the iPad Pro in May 2024. Market research firm Omdia projects substantial growth in the IT sector, forecasting global OLED shipments for IT applications to surge from 9.5 million units in 2022 to 72.3 million units in 2028.
Regional competition intensifies
In a parallel development, Samsung Display (SDC) is also expanding its Vietnam presence, with plans to invest up to US$1.8 billion in its Bac Ninh production base. Samsung Electronics executive chairman Jay Y. Lee's Vietnam visit in September 2024 underscored the country's strategic importance, as he announced plans to establish Samsung's Vietnam operations as the world's largest display module production hub. These developments highlight Vietnam's growing significance for both South Korean display manufacturers.
