Go all out to ensure the normal operation of the Guangzhou Gen 8.5 OLED factory in the first quarter
On March 5th, LG Display (hereinafter LGD) will move some equipment into the Guangzhou factory. LGD is going all out for the normal operation of the 8.5th generation OLED factory in Guangzhou. In addition to ensuring the production line process equipment, Simultaneously will also withdraw the R&D manpower from South Korea and reinvest it in Guangzhou to prepare for mass production.
According to the Korean media Etnews, the equipment moved in this time was originally scheduled to arrive in Guangzhou last month, but with the rapid spread of the new crown epidemic, LGD carried out an extension. Recently, the new crown epidemic in China has stabilized, and most companies have begun to return to normal, and LGD has also resumed its move-in plan accordingly.
Industry insiders said: LGD Guangzhou factory equipment will arrive in Guangzhou at the beginning of this month, so most of the core equipment has been installed before, and this equipment move may be the last batch.
LGD also re-invested R&D manpower into the Guangzhou factory. This is a measure taken after nearly a month after the outbreak of the epidemic in China, which evacuated business travelers and headquarters personnel, based on the judgment that the Guangzhou factory could not continue to postpone the operation.
To this end, a person from LGD said: Although business travel activities at home and abroad are restricted as much as possible at this stage, some necessary personnel are allowed to travel to China. LGD plans to invest the equipment and manpower required for mass production to ensure that the factory completes the preparation for mass production of OLEDs within the first quarter as originally planned.
After China, the rapidly spreading new crown epidemic in South Korea is becoming another stumbling block for LGD. In order to avoid cross-infection, the Chinese government has adopted quarantine measures for those entering South Korea.
The 10 LGD staff members who arrived in Guangzhou last month were placed in quarantine in accordance with city government guidelines and released a few days later with the help of the South Korean embassy. According to rumors, these 10 personnel are the core necessary personnel for the operation of the Guangzhou factory. After Guangdong Province recently implemented the 14-day quarantine measures for Korean immigrants, it became inevitable that the schedule for core personnel to enter the factory would be delayed. The industry believes that Guangzhou LGD is not expected to resume normal operation until at least the second quarter.
The Guangzhou factory, which started production last year, mainly produces 55/65/77-inch large-size OLED panels. Although it was plagued by a ramping yield rate in the early stage of production, it has recently returned to normal through process and component improvements.
As for LGD, which has gradually shifted its business focus from LCD to OLED, the normal operation of the Guangzhou factory this morning can enable the company to get rid of the performance dilemma as soon as possible, and further regain the dominance of the panel market.
A person from LGD said: The company is making every effort to ensure that the Guangzhou factory completes mass production preparations within the first quarter, but the impact of the new crown epidemic still needs attention.