According to recent foreign media reports, at the end of May this year, it was rumored that LG Display intended to invest 4 trillion Korean won (approximately $3.5 billion) in South Korea to construct a new production facility for smartphone OLED displays. However, based on LG's latest financial statements, this initial investment figure seems insufficient. The company has now announced plans to further allocate an additional 9.6 trillion Korean won (around $8.5 billion) towards its OLED initiatives. Industry insiders suggest that Apple might be a significant motivator behind this substantial financial commitment.
It is reported that the second phase of LG Display's investment totaling 9.6 trillion Korean won will be allocated across two distinct areas. Of this amount, 5 trillion Korean won will go toward producing mobile OLED display panels, while the remaining 4.6 trillion Korean won will support investments in facilities aimed at manufacturing large-scale equipment such as smart TVs. From LG Display's financial disclosures, their current cash reserves stand at approximately 7 trillion Korean won, indicating that securing additional funding will be necessary for the second phase of investment.
At this point, speculation began to circulate regarding potential external funding, with many pointing to Apple as a possible source. To achieve the second round of investment, LG Display would require over 2 trillion Korean won. Combined with earlier rumors about collaborative efforts between LG and Apple, this funding could plausibly originate from Apple. Despite both companies declining to confirm or deny the validity of these reports, industry analysts believe that LG Display will only proceed with its expansion plans once formal agreements are signed between the two parties.
The potential benefits for Apple investing in LG Display appear straightforward: securing future supplies of OLED display panels for smartphones. With the upcoming iPhone 8 expected to adopt OLED screens, Apple faces the risk of facing supply constraints down the line. Thus, industry sources indicate that OLED panels produced by LG Display may exclusively cater to Apple’s needs moving forward.
However, recent reports suggest that Apple is also developing its own OLED production lines. Consequently, the primary suppliers for the OLED screens of the future iPhone 8 might include Apple, LG Display, and Samsung Display. This diversified approach could ensure a stable supply chain while meeting Apple’s growing demands for cutting-edge technology in its products.
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