LG to Halve OLED DDI Usage to Cut Costs

According to reports, LG Display is set to adopt a new driver architecture for its OLED TV panels starting next year, aiming to reduce manufacturing costs and improve production efficiency. The company plans to cut the number of display driver ICs (DDIs) used in each OLED TV panel by half—an important step toward enhancing cost-competitiveness in the premium TV market.

According to industry insiders, LG Display will begin applying Dual Rate Driving (DRD) technology to its OLED TV driver ICs. This method doubles the signal transmission capacity of source drivers, allowing larger panels such as 65-inch and 75-inch models to function with only eight DDIs instead of the current sixteen.

While DRD has been a common feature in LCD technology since the 2000s, this marks the first time it's being adapted for OLED TV panels. The company clarified that it does not plan to use DRD for OLED displays in monitors, where smaller pixels and higher frame rates require more advanced signal control.

The shift is strategically aimed at lowering the high production costs that have historically limited OLED TV adoption. The timing aligns with the gradual completion of depreciation at LG Display's OLED plant in Guangzhou, China. Built on 8.5-generation glass substrates with a monthly capacity of 90,000 sheets, the Guangzhou facility is expected to surpass the output of the fully depreciated plant in Paju, South Korea, for large-format OLED panels.

Industry estimates project LG Display's large-size OLED shipments this year will reach around 6.5 to 6.6 million units, including 5.8 million TVs and up to 800,000 monitor panels—an increase of up to 900,000 units from last year. However, the company had earlier forecasted 6 million units during its Q2 earnings call.

At a shareholder meeting in March, LG Display President Jeong Cheol-dong emphasized the company's strategy to expand its large-size OLED business through cost innovation and customer diversification. Notably, Samsung Electronics remains a key client for LG Display's large-format OLED products.

As depreciation at the Guangzhou plant concludes, LG Display expects further cost reductions, enhancing its global competitiveness. With manufacturing efficiency on the rise and prices potentially dropping, OLED TVs are poised for broader market adoption in the coming years.