According to Taiwan's Digitimes, LG Display is facing delays in flexible OLED production at its $900 million E5 line in Gumi that should have started producing panels last month, but now it is expected to start mass production in August.
In April 2017 it was reported that LG Display has secured a 5.5" flexible OLED supply deal to China-based Xiaomi, for the company's next-gen flagship phone. According to Digitimes, however, LGD now lost this supply deal and Xiaomi has ordered over 3 million flexible OLEDs (6" QHD ones) from Samsung, who will supply the displays in December 2017 and January 2018. Xiaomi will have to delay the launch of its flagship phone to early 2018.
LGD was the supplier of the flexible OLEDs in Xiamoi's Mi Note 2 - although this was a limited volume phone. The E5 fab will dramatically increase LGD's capacity so it aimed to support volume production to Xiaomi - and also to other handset makers in China and to LG Electronics too. We recently reported that Apple is in talks with LGD regarding flexible OLED supply for the 2018 iPhone, and other reports say that Google is also discussing a possible supply agreement with LGD.
LG Display currently produces flexible plastic-based AMOLEDs in its 4.5-Gen line that has a capacity of 14,000 monthly substrates. This fab currently makes small OLEDs for wearable applications - and in fact LGD is the exclusive supplier for the OLEDs used in Apple's Watch.
LG's E5 line is a 6-Gen fab that will have a monthly capacity of 7,500 monthly substrates. LG is also working on a third flexible OLED fab, the E6 line, which will also be a 6-Gen fab with double the capacity of the E5 line (15,000 substrates). The E6 is scheduled for the end of 2018. LGD's ambitious P10 OLED fab will also include some flexible OLED capacity - although plans for this fab hasn't been finalized yet, and it will mostly be used to make large area OLED TV panels.