Surprising move in the smart TV industry. Mainly, LG has announced that it will cease production of LCD displays. In this way, the historical manufacturer withdraws from a market it has dominated for years.
As reported by Kedglobal, a highly reliable Korean portal, its subsidiary LG Display LG Electronics will eventually disband its LCD panel factories in China and Korea.
Reason? It is no longer profitable to produce such panels. The entry of Chinese manufacturers such as BOE, whose production costs are quite low compared to LG Display, forced the iconic Korean company to withdraw from the market.
What will happen to Smart TVs with LG LCD technology?
Note that we are talking about completely different jobs. you may not know but LG Display is a subsidiary of LG Electronics and is responsible for the manufacture of displays for LG itself or other manufacturers.
And seeing that production costs have reached unaffordable levels, the Korean company Adapt the technology they use to make LCD screens for televisions.
As Korean media noted, the company plans to adapt its existing facilities in China as follows: Keep producing LCD panels, but in a small format aimed at the automotive industry, phones, tablets and other markets.
So what will happen to LG LCD Smart TVs? you can be so calm because manufacturer will continue to sell LCD and OLED models. The only difference is that LG Electronics has used panels manufactured by LG Display so far and will now bet on an external supplier.
At the moment, BOE is the world’s largest manufacturer of LCD displays.so it will definitely be this Chinese company that will supply LG Electronics with LCD displays for its smart television catalogue.
“We will close the LCD TV panel business for local use in Korea by the end of 2023 at the latestLG Display CFO Kim Sung-hyun said during a call for financial results for the second quarter of the year.
LG’s idea is to produce 60,000 units for the remainder of the year and reduce production to 30,000 units in the first quarter of 2023. In the second half of next year, it completely stopped the production of this type of screen. In this way, although it will continue to sell LCD televisions, it will leave the production of screens to external suppliers.
Source: Cincodias Elpais
