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LG Chem.’s OLED Lighting Business Toward LGD. What is the Future Direction?

It was announced that LG Display will take over LG Chem.’s OLED lighting business department. As the department that was leading the opening of OLED lighting panel market is being merged into LG Display, a significant change in OLED lighting industry is anticipated.

 

One of the merits of this merge is expected to be further improving OLED lighting panel’s mass production potential through LG Display’s existing OLED panel mass production line, labor, and technology. Additionally, when new investment of OLED lighting panel mass production line is being processed, time and cost can be reduced on the basis of LG Display’s manufacturing equipment/material supply chains.

 

On the other hand, as OLED lighting market is still in initial stages the size is not so large. As such, whether LG Display will newly invest is a key issue. Generally, for display panel companies that invest with market size of thousands of millions of dollars in mind, OLED lighting panel line’s new investment does not seem to have a great advantage for LG Display.

 

Therefore, if LG Display carries out OLED lighting panel business, the first step is estimated to be mass production in parts of Paju’s AP2 line rather than new investment for OLED lighting panel mass production line. If parts of AP2 line begin mass production first, mass production timing can be much sooner than new investment and can positively affect expansion of OLED lighting panel market.

 

The issue is marketing strategy. In 2009, Samsung Electronics successfully opened AMOLED smartphone market in Korea via push strategy using AMOLED themed music video that became viral. Much like this, in order to show profit in OLED lighting panel business, LG Display should open the market through push marketing strategy.

[Lighting Fair Japan 2015] LG Chem, 100lm/W OLED Lighting Panel Mass Production Possible in April 2015

LG Chem estimates mass production of highly efficient 100lm/W OLED lighting panel in April this year. In Lighting Fair Japan 2015 (March 3 – 6) LG Chem announced that they have achieved 2014 target of 100lm/W development, and that mass production will be possible from April 2015. Additionally, they presented the 140ml/W roadmap until 2017, and LG Chem is forecast to keep on leading the OLED lighting market.

Until now OLED lighting had lower efficiency compared to the existing fluorescent light (approx. 100lm/W) and LED (approx. 100lm/W or higher), and was mostly used as luminaire rather than down light. However, if active mass production of 100lm/W products begins, utilization as down light will also be possible.

In this exhibition, LG Chem showcased solution concept of down light, and not a luminaire focused exhibition. They also demonstrated OLED lighting’s competitiveness as down light by securing lifetime of 40 thousand hours. This is approximately twice as long as fluorescent light and rivals LED. The biggest issue for OLED lighting is the cost. If the price becomes competitive through active investment, it is analyzed that the OLED lighting market will grow rapidly.

According to UBI Research’s OLED Lighting Annual Report 2014, OLED lighting market is forecast to grow by 100% of compound annual growth rate and form US$ 4,700 million market in 2020.

<LG Chem’s R&D Roadmap, Source : LG chem>

<Front View of LG Chem Booth, Lighting Fair Japan 2015>

By HyunJun Jang, reporter@olednet.co.kr