LGDisplay Announces Indefinite Delay in Guangzhou 8.5 Generation Line Project

[High-tech LED News] Recently, the Korean panel factory LGDisplay announced that it will postpone the Guangzhou 8.5-generation line indefinitely. LGD's new 8.5-generation line investment in South Korea will be extended to 2013. LGD pointed out in the financial report that the price of the product has fallen below the cash cost and the gross profit margin is only 2.9%. According to the survey, LGD has suffered losses for four consecutive quarters due to the continuous decline in panel prices, and the loss in a single quarter is as high as about 600 million US dollars.

In addition, Taiwan-funded giant Chi Mei also halved its capital expenditure this year, from NT$100 billion to NT$50 billion to NT$60 billion, and delayed the operation of the Chengdu 8th generation line. The Suzhou Samsung 7.5 generation line and the 8.5-generation factory of AUO Kunshan have not yet been constructed.

The industry pointed out that with the future technological development trend, the liquid crystal display 8.5 generation line will be difficult to meet the technical needs after 5 years, and the project may eventually be cancelled.

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