LG Display will invest US$750 million to expand its organic light emitting diode (OLED) module factory in Vietnam.
The city of Haiphong approved the plan, Vietnam News Agency said. LG Display will began the expansion of OLED module assembly factory at the city next month.
The new production equipment placed at the factory will begin operations in May.
LG Display invested US$2.5 billion in its Haiphong campus in April 2016. It was to begin OLED and liquid crystal display (LCD) production there.
The company’s total capital expenditure into Haiphong now comes to US$3.25 billion, making it the biggest foreign direct investor for the port city.
Vietnam News Agency said the additional investment will create 5,000 jobs and contribute US$5 million a year to the city’s fiances.
LG Display’s Haiphong campus recorded US$5.98 billion in sales last year, a jump of 624% from 2019. Sales there accounted for 28% of LG Display’s total in 2020. The operation there contributed US$250 million in operating income from January to November in 2020.
Last year, LG Display posted 29 billion won in annual operating loss. This was an improvement over its 1.36 trillion won in annual operating loss recorded in 2019. Rise in demand in IT panels from the pandemic caused LCD panel prices to rise, which helped the company’s earnings. LG Display’s supply of OLED panels to Apple also helped.