In a big move, South Korean company LG has secured permission from the Chinese government to open a factory there. The factory, opening in Guangzhou, will focus on OLED panel production primarily. OLEDs, or organic light emitting diodes, are the technology behind the bright, sharp images seen in modern displays like the iPhone X.
The factory will be built using a staggering $2.33 billion, which underscores how highly LG prioritizes OLED panel production. Many of the Korean company’s high-end televisions are powered by the technology, so this OLED factory will help to power the company’s personal interests. Further, Apple will seek to purchase the displays from LG as well, as it currently relies on Samsung. Ironically, the Korean Samsung is a primary rival of both LG and Apple. By cutting them partly out of the process of constructing iPhones, apple will distance itself from its chief competitor in the American smartphone market. Similarly, by ramping up production, LG will be able to continue battling Samsung in the TV market.
The OLED Factory Itself
The factory itself will begin with production targets of 60,000 displays per month. If that sounds like a lot, it’s a drop in the bucket. The company plans to ramp up production numbers to 90,000 displays per month. However, these numbers pan out, a the company is slated to provide between 2 and 4 million displays to Apple.
The factory will be owned partly by LG, at a 70 percent stake. The Guangzhou Economic and Technological Development District will hold the other 30 percent. This will likely lead to a large increase in the number of jobs in the region, which explains the decision to allow the factory to be built. Concerns regarding environmental safety and fair compensation will likely be raised, as they often are with Chinese factories. However, the demand for smartphones and TVs stays high, so production rolls on.
No comments so far.
Be first to leave comment below.