Beginning of the End? Panasonic and LG Pull Back on LCD Production


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(December 5, 2019) While significantly cheaper than other display tech, traditional LCD manufacturers are struggling to survive in a market that's witnessing falling prices and oversupply. Yesterday, LG Displays announced plans to cut production of LCD panels during 2020 by half, squaring its focus solely on OLED technology. According to South Korea's The Elec, LG Display's intention is to make OLED production cheaper while broadening its reach to new TV manufacturers.

According to LG Display's CFO, Seo Dong-hee: "We plan to downsize at the P7 and P8 LCD TV factories in order to focus more on our strengths and streamline what's necessary." He added that LCD lines at the company's Gen-8 P8 factory in Paju are expected to cease production.

According to HIS Markit's recent report, LG Display is only expected to ship 27 million LCD displays during 2020, down from 48.6 million this year. The research firm added that Samsung and other South Korean manufacturers are expected to lower LCD TV shipments by 36 million next year. These numbers are still high as compared to OLED, which is expected to realize nearly 5.5 million units sold during 2020.

This news comes on the heels of Panasonic's confirmation that it will end the production of LCD panels during the next two years. According to FlatPanelsHD, Panasonic halted LCD TV panel production during 2016. In a released statement, Panasonic says: "Panasonic Corporation announced it will end the production of liquid crystal display ("LCD") panels. While Panasonic had responded to the tough competition and evolution in the business environment of LCD panels, and had taken various measures to shift its market focus and introduce new products, it has determined that further continuation of the business would be unviable."

According to The Elec, poor sales are primarily behind the significant decline in LCD panel prices.
 

tripplej

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I think OLED is what companies should focus on now. .The more that get into it, the cheaper the units will be ..
 
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Randy L

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Good article Todd! ... Well, OLED is definately the better tech with it's richer blacks and more cinematic presentation. I hope that by focusing on OLED companies will be able to solve the inherent problems such as 'burn-in' and darker overall brightness.... I also hope they continue with incorporating automatic internal color calibration as well.
 
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NBPK402

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So Panasonic is no longer making LCDs...are they pulling out of the flat panel market like they did on projectors, or are they going to make other types of TVs?
 

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Market saturation - I thought we hit it a couple years back.

No such thing as an OLED projector. Laser projectors is where they should be throwing their R&D dollars. It's the only thing that I can see to get consumers real HDR via projector.
 

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Panasonic is still making OLEDs... they aren't sold in the US, though. And as far as I'm aware, Panasonic has zero intention of re-entering the US market for TVs. Several years back, someone that was involved with Panasonic corporate dealings told me that Panasonic didn't want to deal with the high return rates (from customers) in the US. Take from that what you will, but this guy is someone that's involved high-level calibration and consulting within the industry.

Panasonic's OLED TVs are supposedly amazing. In fact, I just read a European review touting a new Panasonic OLED as the best TV on the market. Don't forget, Panasonic bought Pioneer's flat-panel division. At the time, some questioned it because plasma was nearing its end. But, turns out it was a huge move on their part because Pioneer's R&D team was way ahead of everyone else, and they're using that backbone to create what many consider to be industry-leading processing. Panasonic, much like Sony, is using LG Display's OLED panels. And, much like Sony, it appears they've implemented a better processing engine than the one LG uses.

As Steve says, an OLED projector isn't feasible, because it's an emissive technology.
 

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Just curious..... would plasma have been a better tech for 4K?
 

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No... Plasma did not translate well to 4K. They were having difficulty making consumer versions larger than 65 inches, it was inefficient (energy-wise), and heavy/bulky. There were also cost of production issues, amplified by LCD's relatively inexpensive nature. Ultimately, OLED is far superior for many of the exact opposite reasons listed above, in addition to the fact that each OLED pixel can turn on and off. It's just better emissive technology.

OLED will eventually meet the same demise as plasma in the consumer TV segment. It has a limitation in brightness output, but, also, MicroLED is waiting in the wings. MicroLED offers many of OLED's strengths, along with powerful levels of brightness.
 

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^^^ what he said ^^^

:yes:
 

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Yes, they call it Onyx. But I'm 99.9% sure that is large microLED panel based. The consumer version called "The Wall" has been paraded around to various industry shows. I've seen it in person twice... it's VERY compelling. The big downside is that it, too, uses panels that are locked together... which requires a certified technician. Hopefully the TV versions will be standard sizes.
 

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Yes, they call it Onyx. But I'm 99.9% sure that is large microLED panel based. The consumer version called "The Wall" has been paraded around to various industry shows. I've seen it in person twice... it's VERY compelling. The big downside is that it, too, uses panels that are locked together... which requires a certified technician. Hopefully the TV versions will be standard sizes.
I have heard the big down side is the very high price.

You know a funny story...back in the 90s when I worked for Customs...we would get engineers from various manufacturers, and I would ask them why we no one has done certain things. One day I was talking to a technician (coming to the USA), and I asked them why no one connects one panel to another to make any size LCD they want. The person said there would be a line separating the modules like the big megatron screens were. I said not if you angle the end pieces with one piece overlapping the rear piece. The guy looked at me, and said what are you doing working here? I said a friend of mine and I talk about various ideas when we have free time, and this is one of our ideas. Well it looks like Samsung has figured out a way to do it! I have no idea how they are linking them together now, but i am curious if it is like our idea was.Not trying to get money...just like that an idea we came up with is either the same as our idea or how similar it is. I told the tech this with the knowledge that if it was a good idea someone might actually make it work (and that I would never get any recognition or money for the idea...just wanted to see if the idea could make it to a reality), and that makes me feel good that I had a good idea, and someone liked it enough to develop the idea to a working product.
 

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We need to dig up some tech specs and see if your idea aligns. The microLED panels lock together... Sony also has a large microLED panel... you can definitely see faint lines between the panels if you look close enough (it’s not overly noticeable, tho).
 

NBPK402

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We need to dig up some tech specs and see if your idea aligns. The microLED panels lock together... Sony also has a large microLED panel... you can definitely see faint lines between the panels if you look close enough (it’s not overly noticeable, tho).
That would be great Todd! I could tell you several ideas I passed on that I am still waiting to see if they ever appear...if you are ever interested let me know and I will tell you.
 
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