In July 2017 LG Display announced that it has decided to build a 8.5-Gen (2200x2500) OLED line in Guangzhou, China, to make OLED TV panels. The Korean government hesitated whether to approve this plan, as it sees OLED as a strategic technology Korea' economy and this is the first time a Korean company plans to build an OLED fab outside of Korea.

LG Display's LCD fab in Guangzhou, China

Reuters reports today that LGD's plan was officially approved today. The Korean government did LGD committed to increase its use of Korean materials and equipment, invest more in Korea and strengthen security checks at its production fabs.

The new fab, according to the initial plan at least, will be a joint-venture with the local government and LGD will hold a 70% share. The total cost for this fab will be KRW2.6 trillion ($2.3 billion USD). Building a fab in China has several advantages - China has lower wages compared to Korea, and the fab is located very close to the very large and important Chinese market. But the main advantage is the government subsidies - according to DSCC this could mean the difference between profit and loss in this fab for LGD.



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