LG Display halts iPhone LCD production

LG Display has halted production of liquid crystal display (LCD) panels for iPhones, TheElec has learned.

The factory that previously made the panels will be converted to making automobile display panels.

LG Display halted iPhone LCD production at its AP3 line at Gumi in the third quarter. The line also stopped making panels for other phones as well in the fourth quarter.

For LG Display, the LCD line for iPhones has been low in profitability. Apple also used organic light emitting diode (OLED) panels instead for its iPhone 12 series. 

Sales of iPhones with OLED is also expected to exceed that of those with LCD panels this year.

Apple’s LCD model, iPhone SE, which launched last year, will use LCD panels by JDI and Sharp instead. 

LG Display had previously attempted to supply LCD for the 2019-model iPhone SE but failed.

AP3, which will now focus on producing automobile display panels, will produce those with low-temperature polycrystalline silicon (LTPS) thin-film transistors (TFT).

LTPS TFT is more advantageous in making larger panels compared to amorphous silicon (a-Si) TFT, which was used mostly for 7 to 8-inch navigation products.

Most automobile LCD displays over 20-inch in size currently use LTPS TFT.

LTPS method also has in-cell touch in which the touch technology is embedded in the display. It also allows for thinner panels that a-Si which uses add-on touch. LG Display produces a-Si LCD panels at its P5 factory. Currently, its automobile OLED panels are made at E5 factory.

LG Display is expected to reduce its a-Si business due to rivals such as China’s BOE and Taiwan’s AUO expecting shipment in the area. LTPS LCD is also used more in new car models compared to a-Si, which is still dominant in older car models.

According to Omdia, for automobile displays 9-inches or bigger in size, LG Display had a market share of 24.9%, followed by JDI’s 14.6% and BOE’s 13.9%. Tianma was fourth with 9.8%, followed by AUO with 8.9%.