LG Display Shifts IT OLED Line for iPhone Panels

LG Display is reportedly planning to realign its IT OLED production line, originally designed for flat-panel displays and PC OLED panels, to accommodate OLED panel production for iPhones. This shift comes in response to a slowdown in demand for Apple's latest OLED iPads, which has resulted in a decline in the operating rate of the current production line.

The realignment aims to reduce costs and enhance overall capacity for manufacturing OLED panels tailored for the iPhone. Currently, LG Display produces iPhone OLED panels on its E6-1, E6-2, and E6-3 lines. Adding another production line, with a capacity of 15,000 6th-generation glass substrates per month, is expected to cost approximately 2 trillion KRW.

While the IT OLED production line has a production capacity similar to the E6 line, it incorporates a process for producing double-stack OLED panels, which feature two emitting layers. This additional complexity increases the construction cost of the line to 3.4 trillion KRW.

The OLED panels for iPads and iPhones differ in both substrate and emitting layer structure. iPad OLED panels utilize glass substrates with Thin Film Encapsulation (TFE), whereas iPhone OLED panels use polyimide (PI) substrates, a type of plastic, along with TFE. Additionally, iPhone OLED panels contain a single emitting layer, while iPad panels have two.

Producing iPhone OLED panels on the IT OLED line requires skipping a few steps in the process. Moreover, the only significant modification needed is the installation of extra equipment for the touch process. However, when the production line manufactures both types of panels simultaneously, the production intervals may vary due to differences in materials.

Given the expected lack of growth in demand for Apple's tablets this year, LG Display may prioritize maintaining iPad OLED panel inventory while simultaneously focusing on iPhone OLED panel production.

This adjustment, however, requires approval from Apple, and the production line will only begin making iPhone OLED panels once this approval is granted. The deadline for this approval is set for February, as LG Display anticipates having sufficient iPad OLED panels available until then.

LG Display aims to supply 70 million iPhone OLED panels in 2024, surpassing last year's supply of 60 million and 2023's 51.8 million units.