LG Display Co., Ltd. (LG Display) operates as an innovator of TFT-LCD, OLED and other display panel technologies.
The company manufactures display panels in a broad range of sizes and specifications primarily for use in IT products (comprising notebook computers, desktop monitors and tablet computers), televisions and various other applications, including mobile devices and automotive displays.
The company manufactures TFT-LCD and OLED technology-based display panels in a broad range of sizes...
LG Display Co., Ltd. (LG Display) operates as an innovator of TFT-LCD, OLED and other display panel technologies.
The company manufactures display panels in a broad range of sizes and specifications primarily for use in IT products (comprising notebook computers, desktop monitors and tablet computers), televisions and various other applications, including mobile devices and automotive displays.
The company manufactures TFT-LCD and OLED technology-based display panels in a broad range of sizes and specifications primarily for use in IT products (comprising notebook computers, desktop monitors and tablet computers televisions, mobile devices, including smartphones, as well as auto products; and the company is one of the world’s leading suppliers of large-sized OLED television panels. The company also manufactures display panels for industrial and other applications, including entertainment systems and medical diagnostic equipment. In 2024, the company sold a total of 115.2 million display panels that are nine inches or larger.
The company operates fabrication facilities, which include separately designated sets of fabrication production lines housed in certain facilities, located in its Display Clusters in Gumi and Paju, Korea and in Guangzhou, China. The company also operates module assembly facilities in Korea and abroad.
The company seeks to build its market position based on collaborative relationships with its customers and suppliers, a focus on high-end differentiated specialty display products and manufacturing productivity. The company's end-brand customers include many of the world’s leading manufacturers of IT products and televisions, including LG Electronics, as well as mobile devices and automobiles.
At the direction of the company's end-brand customers, the company typically ships its display panels to their original equipment manufacturers, known as 'system integrators,' who use the company's display panels in products they assemble on a contract basis for the company's end-brand customers. The company engages in direct sales (including through the company's overseas subsidiaries), as well as indirect sales through trading companies, including the company's formerly affiliated trading company, LX International (formerly known as 'LG International Corp.') and its subsidiaries, to end-brand customers and their system integrators. Pursuant to the separation of certain companies, including LX International, from the LG Group to form a separate business group named the LX Group, which separation was approved by the Korea Fair Trade Commission in June 2022, LX International is no longer the company's affiliated company.
Technology Description
TFT-LCD Technology
A TFT-LCD panel consists of two thin glass substrates and polarizer films between which a layer of liquid crystals is deposited and behind which a light source called a backlight unit is mounted. The frontplane glass substrate is fitted with a color filter, while the backplane glass substrate, also called a TFT array, has many thin film transistors, or TFT, formed on its surface. The liquid crystals are normally aligned to allow the polarized light from the backlight unit to pass through the two glass panels. When voltage is applied to the transistors on the TFT array, the liquid crystals change their alignment and alter the amount of light that passes through them. Meanwhile, the color filter on the frontplane glass substrate gives each pixel its own color. The combination of these pixels in different colors and levels of brightness forms the image on the panel.
The process for manufacturing a TFT-LCD panel consists of four steps:
TFT array process – involves fabricating a large number of thin film transistors on the backplane glass substrate. The number of transistors corresponds to the number of pixels on the screen. The process is similar to the process for manufacturing semiconductor chips, except that transistors are fabricated on large glass substrates instead of silicon wafers. Unlike in the semiconductor industry, however, the number of transistors per glass substrate is not a primary driver of the manufacturing costs for TFT-LCD panels;
Color filter process – involves fabricating a large number of color regions on the frontplane glass substrate that will overlay the TFT array prior to the cell process. The colored dots of red, green and blue combine to form various colors. The process is similar to the TFT array process but involves depositing colored pigments instead of transistors;
Cell process – involves joining together the backplane glass substrate that is arrayed with transistors and the frontplane glass substrate that is patterned with a color filter. The space between the two glass substrates is filled with liquid crystal materials. The resulting adjoined substrate is called a cell; and
Module assembly process – involves connecting additional components, such as driver integrated circuits and backlight units, to the cell.
The TFT array, color filter and cell processes are capital-intensive and require highly automated production equipment; and are the primary determinants of fixed manufacturing cost. In contrast, the module assembly process involves semi-automated production equipment and manual labor to assemble the various components. Materials are the primary drivers of variable manufacturing cost.
IPS Technology
In-Plane Switching, or IPS, is a liquid crystal switching technology that was developed to address commonly faced problems with TFT-LCD panels that utilized other liquid crystal technologies, namely narrow viewing angles, inconsistent picture uniformity and slow response times. Unlike other liquid crystal technologies where the liquid crystals are aligned vertically or at an angle in relation to the glass substrate, with IPS technology, the liquid crystals are aligned horizontally in parallel to the glass substrate, which allows for wider viewing angles, greater picture uniformity and faster response times. The company’s TFT-LCD display panels, including its TFT-LCD television panels, utilize IPS technology.
Advanced High Performance IPS, or AH-IPS, is an IPS technology that integrates ultra-fine pitch technology and high transmittance technology, which allows for ultra-high resolution imagery, increased luminance and greater energy efficiency. AH-IPS is utilized in the company’s panels for certain types of IT products, smartphones and other mobile display products.
OLED Technology
An OLED panel consists of a thin film of organic material encased between anode and cathode electrodes. When a current is applied, light is emitted directly from the organic material. Because a separate backlight is not needed, OLED panels can be lighter and thinner compared to TFT-LCD panels, which require a separate backlight. In addition, images projected on OLED panels have higher contrast ratios and more realistic color reproduction compared to images projected on TFT-LCD panels.
The company utilizes different types of sub-pixel and backplane technologies in its OLED panels. Under the RGB sub-pixel structure, a combination of red, green, and blue sub-pixels, without color filters or white sub-pixels, is used to produce a range of colors. While the company, along with most of its competitors, utilizes RGB sub-pixel technology for small- and medium-sized products, there are various technical challenges in scaling RGB sub-pixel technology for large-sized products, such as television panels. For its OLED television panels, the company has overcome these challenges by opting to utilize its WRGB sub-pixel structure, whereby red, green, and blue color filters are placed over white OLED sub-pixels to produce a range of colors and began production of OLED television panels at its OP1 fabrication facility in 2013. Mass production of its plastic OLED panels for mobile and other products began at its AP3 and AP4 fabrication facilities in August 2017 and July 2019, respectively. In July 2020, the company commenced mass production of large-sized OLED panels at its CO fabrication facility, located in Guangzhou, China. In February 2024, the company completed the construction of its new AP5 fabrication facility and has subsequently commenced mass production of medium-sized OLED panels at such facility. As for backplane technology, the company’s large-sized OLED products are produced using oxide TFT backplane technology, as compared to its smaller-sized OLED products, which utilize low-temperature polycrystalline silicon, or low-temperature polycrystalline oxide, backplane technology.
Backplane Technology
Oxide TFT
The company uses oxide TFT technology to produce backplanes for use in the company's large-sized OLED panels, such as the panels used in OLED television products. The traditional amorphous silicon-based TFT, or a-Si TFT, backplane technology has certain limitations that render it unsuitable for producing backplanes for use in large-sized OLED panels with high resolutions and fast refresh rates. For example, in larger and higher-resolution display panels, a-Si TFT backplanes consume increased rates of power and experience a decrease in the rate at which each transistor is able to switch between images, or the rate of mobility.
As an alternative to a-Si TFT backplane technology, the company has successfully adopted a metal oxide-based TFT, or simply oxide TFT, backplane technology. In place of the amorphous silicon-based semiconductors used in a-Si TFT backplanes, oxide TFT backplanes utilize metal oxide-based semiconductors, which consume less energy, have a higher rate of mobility and allow for construction of display panels with narrower bezels as compared to display panels with traditional a-Si TFT backplanes.
Because the manufacturing process of oxide TFT-based OLED panels is similar to the process used to manufacture TFT-LCD panels, the company is able to use its existing TFT-based production lines with relatively little modification to mass produce large-sized OLED panels.
LTPS and LTPO
LTPS backplanes are suitable for use in the production of high-resolution display panels due to their higher mobility rates compared to a-Si TFT or oxide TFT backplanes. However, due to a complex manufacturing process, LTPS backplanes have relatively higher production costs compared to a-Si TFT or oxide TFT backplanes, making it uneconomical to use in the production of large-sized panels. As a result, the company generally utilizes LTPS backplanes in the production of small- and medium-sized TFT-LCD panels and OLED smartphone and other applications.
The company also uses LTPO backplane technology in the company's wearable devices and smartphones, which combines elements of both LTPS and oxide TFT technologies to produce backplanes with greater energy savings than LTPS backplanes.
Products
The company manufactures display panels of various specifications that are integrated by the company's customers into principally the following products:
IT products, which comprise notebook computers (utilizing display panels ranging from 11.6 inches to 18 inches in size), desktop monitors (utilizing display panels ranging from 15.6 inches to 49 inches in size) and tablet computers (utilizing display panels ranging from 7.85 inches to 13 inches in size);
Televisions, which utilize display panels in various sizes ranging from 11.5 inches to 98 inches in size;
Mobile and other products, which utilize a wide array of display panel sizes, including smartphones and other types of mobile phones and industrial and other applications, such as entertainment systems and medical diagnostic equipment; and
Auto products, which utilize a variety of display panel sizes ranging from 7 inches to 38.9 inches in size.
Unless otherwise specified, when the company refers to panels in this annual report, it means assembled cells with added components, such as driver integrated circuits and backlight units.
The company designs and manufactures its panels to meet the various size and performance specifications of its customers, including specifications relating to thinness, weight, resolution, color quality, power consumption, response times and viewing angles. The specifications vary from product to product. For television panels, a premium is placed on faster response times, wider viewing angles, higher resolution and greater color fidelity. Notebook computer panels require an emphasis on thinness, light weight and power efficiency, while desktop monitor panels demand a greater focus on brightness, color brilliance, faster response times and wide viewing angles. For mobile panels, particularly smartphones, an emphasis is placed on brightness and power efficiency. For automotive display panels, the focus is on high luminance, longer lifespan, temperature reliability and lower power consumption.
In addition to manufacturing and selling display panels, the company manufactures and sells desktop monitors through its joint venture companies.
IT Products
The company’s panels for IT products comprise display panels for notebook computers (ranging from 11.6 inches to 18 inches in size), desktop monitors (ranging from 15.6 inches to 49 inches in size) and tablet computers (display panels ranging from 7.85 inches to 13 inches in size). In 2024, the company’s principal products in terms of sales revenue in this category included panels of various sizes ranging from 13.5 inches to 16 inches for notebook computers, 23.5 inches to 27 inches for desktop monitors, and 10.86 inches to 13 inches for tablet computers.
Televisions
The company's television display panels range from 11.5 inches to 98 inches in size. The company began mass production of television display panels in 2001. In 2024, the company's principal products in this category, in terms of sales revenue, consisted of display panels of sizes between 55 inches and 77 inches. The company's sales of television display panels, which had historically been its largest product category by revenue in prior years, had generally declined in recent years, as it had reduced, and recently ceased, most of its production of TFT-LCD television display panels, (which had historically comprised a substantial majority of its television display panels) in light of the weakening demand for its television products, in part due to rising inflation, interest rates, and increasing economic volatility and uncertainty globally, which contributed to downward pricing pressure.
In 2022, the company reduced its production capacity of TFT-LCD panels for televisions at its manufacturing facilities in China and ceased production at, and closed, its P7 facility (where the company has produced TFT-LCD panels for televisions) in December 2022, in light of its continued efforts to increase the proportion of OLED television panels in the company’s product mix and the production capacity for such panels and further reduce its production level of TFT-LCD panels. Moreover, the company has been implementing a phased exit strategy for its TFT-LCD television panel manufacturing facility in China in light of TFT-LCD television panels’ higher degree of sensitivity to market volatility and the current oversupply in the TFT-LCD television display panel market. More recently, in September 2024, as part of the company’s efforts to accelerate the ongoing shift in its strategic direction to focus on OLED panels, the company entered into an agreement with TCL CSOT to dispose of its entire equity interest in LG Display (China) Co., Ltd. and LG Display Guangzhou Co., Ltd., which engage in TFT-LCD panel manufacturing and TFT-LCD module manufacturing for televisions, respectively. Following the completion of the sale, these entities were excluded from the scope of the company’s consolidated subsidiaries effective April 1, 2025. The company has fully exited the TFT-LCD television panel business and is focusing on ultra-large OLED television panels and premium business-to-consumer products. Consumer demand for both TFT-LCD and OLED televisions decreased in 2022 and 2023 due in part to the tapering of the temporary surge in demand for such products caused by the COVID-19 pandemic. Additionally, products purchased during the peak of the pandemic had not yet reached their replacement cycles, and there was a prolonged general decrease in consumer consumption levels due to rising inflation and interest rates and economic volatility and uncertainty globally. In 2024, while the overall television market conditions continued to remain weak amid continued economic volatility and uncertainty in many parts of the world and intensifying competition between OLED and mini-LED technologies, its revenue from television display panels increased due to its strategic focus on diversifying its product mix and increasing the proportion of gaming OLED and ultra-large display panels.
Brand manufacturers of televisions and their distribution channels prefer long-term arrangements with a limited number of display panel suppliers that can offer a full product line.
Mobile and Other Products
The company’s product portfolio also includes panels for mobile and other products, which utilize a wide array of display panel sizes, including smartphones and other types of mobile phones and industrial and other applications, including entertainment systems and medical diagnostic equipment. Display panels that are nine inches and smaller are referred to as small- and medium-sized panels.
Some of the panels the company produces for industrial products, such as medical diagnostic equipment and automotive products, are highly specialized niche products manufactured and designed to the specifications of the company's clients, while others, such as industrial controllers, may be manufactured by slightly modifying a standard product design for the company's other products, such as desktop monitors. Display panels for these other products broaden the company's sales base and product mix. They are also often a good channel through which the company can commercialize a particular technology that the company has developed. The company generally determines the production level and specification of its display panels for mobile and other products by assessing various business opportunities as they arise.
Auto Products
The company produces a variety of display products based on OLED and TFT-LCD technologies in various sizes and shapes for auto products. It is further developing innovative new technologies for auto products, including switchable privacy OLED displays, ultra-large pillar-to-pillar displays, and infrared camera under-display panels, as well as free-form design panels in curved and slidable shapes. The company's panels for auto products range from 7 inches to 38.9 inches in size. The company’s panels are designed and manufactured to the specifications of its customers, which mainly consist of leading global automobile manufactured to the specifications of its customers, which mainly consist of leading global automobile manufacturers. From 2022 to 2024, the demand for automotive panels experienced gradual growth, driven by the recovery of the automobile market and increasing adoption of display panels, partly due to a recovery in demand for automobiles following the COVID-19 pandemic. In recent years, the company has been focusing on developing and manufacturing large-sized OLED automotive display panels in light of the growth of the electric vehicle market and the development of autonomous driving technology.
Sales and Marketing
Customer Profile
The company’s display panels are included primarily in IT products, televisions, mobile devices, automobiles and other products sold by its global end-brand customers, including LG Electronics. LG Electronics is its largest shareholder, and the terms of the company’s sales to LG Electronics are negotiated based on then-prevailing market prices as adjusted for LG Electronics’ requirements, including volume and specifications.
The company negotiates directly with its end-brand customers concerning the terms and conditions of the sales, but typically ship the company's display panels to designated system integrators at the direction of these end-brand customers. Sales data to end-brand customers include direct sales to these end-brand customers, as well as sales to their designated system integrators, including through the company's formerly affiliated trading company, LX International, and its subsidiaries.
A substantial portion of the company's sales is attributable to a limited number of its end-brand customers. The company's top ten end-brand customers together accounted for a significant majority of the company's sales in 2024. Of the company's top ten end-brand customers, two of them each accounted for more than 10% of the company's sales on an individual basis for each of the past three years. For example, sales to LG Electronics, including as a system integrator, amounted to approximately 14% of the company's sales in 2024.
In addition to the company’s top ten end-brand customers, it sells a portion of its display panels to a variety of other manufacturers of computers and electronic products.
Sales
The company's sales and marketing departments seek to maintain and strengthen relationships with the company's customers in existing markets, as well as expand the company's business in new markets and with new customers. The company has wholly-owned sales subsidiaries in the United States, Japan, Germany, Taiwan, China, and Singapore.
The focus of the company’s sales activities is on strengthening its relationships with large end-brand customers, with whom the company maintains strong collaborative relationships. Customers look to the company for a reliable supply of a wide range of display products. The company views its relationships with its end-brand customers as important to their product development strategies, and it collaborates with its end-brand customers in the design and development stages of their new products. In addition, the company's sales teams coordinate closely with its end-brand customers’ designated system integrators to ensure timely delivery. For each key customer, the company appoints an account manager who is primarily responsible for its relationship with that specific customer, complemented by a product development team consisting of engineers who participate in meetings with that customer to understand the customer’s specific needs.
In 2024, and historically, the majority of the company’s sales were generated from transactions pursuant to purchase orders on an ongoing basis from its global customers. Typically, the company’s end-brand customers or their designated system integrators place purchase orders with the company a few weeks prior to delivery. Generally, the head office of an end-brand customer provides it with advance rolling forecasts, which, together with its own forecasts, enable the company to plan its production schedule in advance.
As part of its ongoing efforts to enhance its overall business structure, including efforts to improve its profitability and reduce production volatility, the company has been actively seeking, and plan to continue, to increase the proportion of products manufactured under advance supply agreements that leverage its stable production capabilities and technological leadership in advanced display products, including those utilizing OLED technology. Through these supply agreements, the company intends to mitigate its exposure to fluctuations in the volume and market pricing of display products across its business areas, as long as there is no significant decline in demand caused by macroeconomic uncertainties. While these supply agreements provide an indication of the size and key components of a customer’s order, neither party is obligated to supply or purchase any products until a firm purchase order is issued.
The company primarily engages in direct sales (including through the company's overseas subsidiaries), and to a lesser extent, indirect sales through trading companies and its subsidiaries, to end-brand customers and their system integrators. The company's sales subsidiaries procure purchase orders from, and distribute the company's products to, system integrators and end-brand customers located in their region. In regions where the company does not have a sales subsidiary, or where doing so is consistent with local market practices, the company sells its products to trading companies and its subsidiaries. These subsidiaries of trading companies process orders from and distribute products to customers located in their region.
The company generally provides a limited warranty to its end-brand customers, including the provision of replacement parts and warranty services for the company's products.
Competition
The company’s principal competitors are Samsung Display in Korea; Innolux and AU Optronics in Taiwan; Japan Display and Sharp in Japan; and BOE, TCL CSOT (TCL China Star Optoelectronics Technology), and HKC in China.
Research and Development
The company’s research and development expenses were won 1,448 billion (U.S.$980 million) in 2024.
Suppliers
With respect to glass substrates, Paju Electric Glass Co., Ltd., a joint venture company in which the company owns a 40% equity interest, provides the company with a stable supply at competitive prices.
Environmental Matters
As a member of the World Display device Industry Cooperation Committee, or WDICC, a display industry organization focusing on environmental issues, the company have voluntarily agreed to reduce emission of greenhouse gases, such as nitrogen trifluoride, or NF3, sulfur hexafluoride, or SF6, and carbon tetrafluoride, or CF4, gases, by developing and adopting cost-effective abatement technologies and systems and increasing the number of abatement systems installed in the company's facilities.
In order to respond to applicable domestic and overseas environmental regulations, such as the European Union's Restriction of Hazardous Substances (RoHS) and Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) that restrict the use of certain hazardous substances, the company operate a hazardous substance management program that implements a four-step procedure that manages various stages of the company's production cycle, beginning with the registration process of the company's business partners up to the mass production stage.
For the more efficient operation of the company's waste water treatment equipment, the company has also entered into an agreement with Techcross Environmental Services Inc. for the operation of the company's water treatment system.
The company also operates a 'Hazardous Substance Management System for Products' that effectively manages hazardous substances by classifying them into four levels: A-I, A-II, B-I, and B-II.
Operations at the company's manufacturing plants are subject to regulation and periodic scheduled and unscheduled on-site inspections by the Korean Ministry of Environment and local environmental protection authorities.
As part of the company's efforts to establish and operate environmental-friendly energy management systems at the company's domestic and overseas fabrication facilities and production plants, the company has received the International Organization for Standardization ('ISO') 14001 (environmental management system) and ISO 50001 (energy management system) certifications for all of the company's domestic and overseas production sites.
Joint Ventures
From time to time, the company has pursued a number of joint venture initiatives. For example, in September 2012, the company entered into a joint venture agreement with Guangzhou GET Technologies Development Co., Ltd., or GET Tech, and Shenzhen SKYWORTH-RGB Electronic Co., Ltd., or Skyworth, to establish LG Display (China) Co., Ltd., which owned and operated the company’s CA fabrication facility in Guangzhou, China.
The company initially acquired a 70.0% equity interest in LG Display (China). Each of GET Tech and Skyworth initially owned a 20.0% and 10.0% equity interest in LG Display (China), respectively. In connection with such transaction, the company first acquired Skyworth’s 10% equity interest in the company and subsequently entered into a sale agreement with TCL CSOT in September 2024 to dispose of its entire 80% equity interest in LG Display (China). Following the completion of the sale, LG Display (China) was excluded from the scope of its consolidated subsidiaries effective April 1, 2025. In addition, in July 2018, the company established and acquired a 69% ownership interest in a joint venture with the government of Guangzhou, LG Display High-Tech (China) Co., Ltd., to construct its new CO fabrication facility to manufacture next generation large-sized OLED panels in Guangzhou, China. The company owns a 70% equity interest in LG Display High-Tech (China), and the company commenced mass production of large-sized OLED panels at the CO fabrication facility in July 2020.
History
The company was founded in1985. It was incorporated in 1985 under the laws of the Republic of Korea. The company was formerly known as LG.Philips LCD Co., Ltd. and changed its name to LG Display Co., Ltd. in March 2008.
