It is anticipated that LG Display`s decision on the establishment of the 8th-generation OLED display factory in Guangzhou, China, Observations are predominant that permits will be granted as a condition to strengthen technology spill prevention measures.

According to industry sources, the government`s Industrial Technology Protection Committee will hold a plenary session in mid-February and announce the final approval of LG Display`s 8G OLED investment in Guangzhou, China, which was filed in July. The Subcommittee on Display was held three times in the past, and on the 30th of last month, the Expert Committee under the Industrial Technology Protection Committee was completed.

Display industry is watching took the final direction to the government has already approved investment, more likely to take out a Chinese investment authorizations granted in line with LG Display-China summit in mid-month. In particular, there is a possibility that LG Display`s investment in China will be discussed as one of the negotiation cards at the Korea-China summit.

That the government is most concerned about as tough a skills gap, the key process initiatives, persuasion process enough companies on the basis of its own security system, etc. about the OLED core technology leakage problem, and the lack of justification has to prevent a Chinese factory established technology leakage concerns The evaluation comes out. It is also pointed out that the conflict between China and Sad (high-altitude missile defense system) has entered into sea mode.

But the government is still firmly shut his mouth up about the whether final approval. An official from the Ministry of Commerce, Industry and Energy said, "We will hold a plenary meeting on industrial technology protection during this month and decide whether to approve the approval of LG Display`s factory in China. Until then, we can not comment on approval or timing."

Guangzhou, China OLED industry has a factory established in LG Display, it is expected to produce 2.6 million panels per year for OLED TV. However, it will start to invest in facilities in the first quarter of next year and it is expected to have the same production capacity in 2020. Given that LG Display is able to supply large-size OLED panels annually at 1.7mn units, its production capacity will increase 1.5x in 2020.

Industry expert said, "large-scale Chinese investment in LG Display may be our side gifts take to the Korea-China summit," he said, "just a few months Second Guangzhou OLED plant construction approval announcement postponed As a hitch in the management of related equipment, components and materials SMEs "He said.


By Kim Eun silverkim@


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