LG Display on Wednesday said it shifted to a net profit in the fourth quarter of 2020, on the back of increased demand for its panels for IT products and sales of OLED displays amid the pandemic-induced stay-at-home trend.
A model poses beside LG Display’s transparent organic light-emitting diode (OLED) panels inside LG Science Park in Magok-dong, western Seoul.
LG Display turned a profit for the first time since the fourth quarter of 2018 as the shipment of panels for computer monitors and laptops shot up on increased demand from people working and studying at home due to the coronavirus pandemic.
LG Display continued to lose money in the second quarter, beset by falling demand for televisions and smartphones in the wake of the coronavirus pandemic and stagnant prices of liquid crystal display panels.
Samsung Electronics is in talks with competitor LG Display for the purchase of display panels, industry sources said Monday, amid its transition to production of next-generation display.
The growing popularity of organic light-emitting diode (OLED) televisions could be a big opportunity for LG Display, the sole producer of large-sized OLED TV panels, to recover its losses, according to analysts.
Loss-making LG Display thinks part of the answer may lie in "solutions." The company, which is 37.9 percent owned by LG Electronics, has been hit hard as Chinese manufacturers move aggressively into the display business.
LG Display says it will develop a stretchable micro light-emitting diode (LED) display by 2024 as part of a state-run project led by the Ministry of Trade, Industry and Energy.
Korea's big electronics companies will likely lose their global dominance in mobile OLED panel production to Chinese competitors by 2024 as Chinese panel makers ramp up production to seize on the growing demand for the advanced screen type.