Originally Posted by thebishman
Will this new plant have any impact of quantity/pricing of the 77” panel?
LGD is producing only 1% of their output at 77" (~40,000 77" WOLED panels in 2019.
The new 8.5G plant in Guangxhou plant will ~double production capacity from 70,000 8.5G sheets per month to 130,000 once stage 1 is fully-ramped.
Even assuming LGD continues to be 'strategc' about the 75/77" Premium TV market (meaning they are not really taking it seriously yet) and stick to 1% levels for 77" production, that should mean close to twice as many 77" WOLEDs produced once the new 8.5G plant in Guangzhou is up and running.
And in our free-market economy, higher production levels = lower prices.
But this increased volume, incrementally lower pricing of 77" WOLEDs from increased 8.5G capacity nothing compared to what the ramp-up of the 10.5G plant will mean.
While LGD can use single 8.5G sheet to msnufacture 2 77" WOLED panels, they can use a single 10.5G sheet, costing 50% more, to manufacture 6 75" WOLED panels (the same as the number of 55" WOLED manufactured on an 8.5G sheet).
So in essence, while a 77" WOLED at 8.5G costs 3X the cost of a 55" WOLED panel, at 10.5G, a 75" WOLED costs 1.5x the cost of a 55" WOLED (~half as much).
Oh, and the 10.5G plant can pretty much only be used to manufacture 65" and 75" WOLEDs (55" much more efficient on 8.5G), so by the time the 10.5G plant is ramping, it's a near-certainly that LGD will be taking the 75/77" Premium TV market much
more seriously and will have increased 75/77" WOLED production share more than 10-fold from today's 1% to over 10% (at the very least).
That means moving from ~40,000 77" WOLED panels produced in 2019 to over 1 million in 2021 or 2022 when LG is planning to be at a production level of over 10M WOLED panels annually.
By then, entry-level 75" WOLEDs are almost certian to be priced under $3000 (where Samsung's 75Q80 is priced today).