SEOUL: South Korea’s LG Display said on Friday it planned to invest close to $9.0 billion in a new plant to produce organic light-emitting diode (OLED) displays, anticipating a surge in demand for the ultra high-definition technology.
Total investment in the plant, to be built in Paju near the border with North Korea, is expected to top 10 trillion won ($8.7 billion), the company said.
Expenditure in the first stage has been set at 1.84 trillion won, with production scheduled to begin in the first half of 2018.
LG Display CEO Han Sang-Beom hailed what he called an “historical investment” that would make the plant the “center of the global OLED industry.”
OLED screens deliver a more vivid picture quality, consume less electricity and promise wider profit margins than the liquid crystal display (LCD) in common use.
LG Display is currently the world’s largest LCD panel producer but has been signaling a major shift to the more advanced OLED technology for some time.