LG Display builds OLED factory in Vietnam to avoid possible China retaliation over THAAD

[Viet]

Do you actually have the capability to copy and make a product similar or better in quality?

Are you sure Vietnamese would not burn them down in times of uncontrolled rage?

Which specific technology that Korean have that China does not have?

It is not about Vietnam can make better than China, we can't copy things easily like you do, the point is why it is attractive for the Koreans to set up factories in Vietnam?

The Koreans save money because they pay salaries about half of what they pay in China. Assume Vietnamese workers productivity is 60pct of Chinese, then it is one of the factors they choose vietnam. In addition I believe the Koreans pay no tax in the first 5 years, 10pct tax in the 5 following years and 25pct corporate tax after that.

Second it makes sense to open factories in Vietnam because we are the manufacturing base for Korea. The factories can also deliver products to other Korean facilities in China.

Last, Vietnam has signed lots of FTAs. Exporting from Vietnam will avoid tariffs and barriers.

No I think even the Chinese start another round of provocation there will be no riots in Vietnam. The riot police has strengthened.

I have little insight about what China can do more in technology than the Koreans. Chinese and Taiwanese businessmen are welcome to open factories in Vietnam.

 

[zeronet]

Notice that it is an "OLED assembly lines" instead of a fabrication line. That's why the cost is only at US$876million. Usually a modern OLED/LCD panel fabrication line costs around USD$5 billion and up. For example, Foxconn/Sharp plans to invest US$8.8 billion on 10.5 generation LCD fab line in Guangzhou, China

http://www.reuters.com/article/us-hon-hai-china-investment-idUSKBN14J0UH

BOE plans to build a 6-gen OLED fab line in Chengdu, costing US$4.8 billion
http://www.oled-info.com/boes-6-gen-amoled-fab-chengdu-track-begin-production-towards-end-2017

Most likely LG will transport the OLED panels produced in S Korean to Vietnam for the final assembly.

 

[Viet]

From where will you get your Rare Earth Metals to build tons of those LG products?

I have no idea. Vietnam rare earth production base is very thin, but since the world buys this stuff in China, I guess we do the same.

 

[jhungary]

Which specific technology that Korean have that China does not have?

BOE, the largest AMOLED producer in China is currently on 6 Gen AMOLED production cycle as of 2016 news, while LG already started 9.7 Gen in 2015 and most definitely in 8 Gen as of 2015

While BOE is mulling over 8 Gen in 2018 production cycle, LGD is mulling a 10 Gen Production this year, and last I heard, they were on track.

http://en.ofweek.com/news/BOE-s-6-G...rmed-will-begin-mass-production-in-2017-40378

http://www.oled-info.com/boe-plans-8-gen-oxide-tft-wrgb-amoled-line-hefei

http://www.oled-info.com/will-lg-display-build-gen-10-oled-tv-fab

http://www.oled-info.com/lgd-progresses-its-p10-oled-fab-considering-building-gen-10-tv-line

So, you tell me what LG have and China don't have, why China is lacking 2 gen away?

Granted, the purposed 900 mil factory is also a 6 Gen assembly plant as they planed to move the 6 gen line overseas.

Also, not just TV Fab secret are in plays here, there are some other technoloy such as Passive 3D, enhancment technology which LG patented can be at stake.

 

[TaiShang]

It is not about Vietnam can make better than China, we can't copy things easily like you do, the point is why it is attractive for the Koreans to set up factories in Vietnam?

The Koreans save money because they pay salaries about half of what they pay in China. Assume Vietnamese workers productivity is 60pct of Chinese, then it is one of the factors they choose vietnam. In addition I believe the Koreans pay no tax in the first 5 years, 10pct tax in the 5 following years and 25pct corporate tax after that.

LG already has two units in Mainland China, as much as I know. It is regular business decision. Lower Vietnam labor cost might have played a role. But the way you dramatise the investment decision does not reflect the reality.

Second it makes sense to open factories in Vietnam because we are the manufacturing base for Korea. The factories can also deliver products to other Korean facilities in China.

Ever heard of regional manufacturing chain. It is normal, especially in East Asia. Again, nothing to dramatise. You may rightfully feel good about the proposed assembly plant but you are crafting a story of hostility from it.

Last, Vietnam has signed lots of FTAs. Exporting from Vietnam will avoid tariffs and barriers.

China also has an FTA with Korea. CN-JP-KR FTA is under negotiation.

Again, nothing to over-dramatise.

No I think even the Chinese start another round of provocation there will be no riots in Vietnam. The riot police has strengthened.

I believe there will be because China has been building a number of rigs. There is no way to stop entirely sporadic and quick development of violence and vandalism.

I have little insight about what China can do more in technology than the Koreans. Chinese and Taiwanese businessmen are welcome to open factories in Vietnam.

I did not say more. I said, in particular imaging technology, albeit China and Korea seem to have invested in different platforms, both are not in short of home-based technology and knowledge.

There will always be communication and investment between China and Korea. In fact, Hyundai just recently announced a major auto plant in China.

 

[zeronet]

BOE, the largest AMOLED producer in China is currently on 6 Gen AMOLED production cycle as of 2016 news, while LG already started 9.7 Gen in 2015 and most definitely in 8 Gen as of 2015

While BOE is mulling over 8 Gen in 2018 production cycle, LGD is mulling a 10 Gen Production this year, and last I heard, they were on track.

http://en.ofweek.com/news/BOE-s-6-G...rmed-will-begin-mass-production-in-2017-40378

http://www.oled-info.com/boe-plans-8-gen-oxide-tft-wrgb-amoled-line-hefei

http://www.oled-info.com/will-lg-display-build-gen-10-oled-tv-fab

http://www.oled-info.com/lgd-progresses-its-p10-oled-fab-considering-building-gen-10-tv-line

So, you tell me what LG have and China don't have, why China is lacking 2 gen away?

Granted, the purposed 900 mil factory is also a 6 Gen as they planed to move the 6 gen line overseas.

LG's focus is on OLED TV, which costs more than usd$5000 for each and far from being affordable and hence main stream market and being profitable . That's why they need 10-gen fab line instead of more main-stream 5.5/6 gen line which is tuned for mobile phones. hopefully you already got the basic sense that higher gen fab line only means larger panel size, not necessarily more advanced tech. The dominant power in OLED now is Samsung, who is running 5.5 and 6 gen OLED lines. LG is weak on this field.

China's BOE already installed a 5.5 gen OLED line, started building two 6 gen OLED lines in 2016, and are talking with Apple for the iphone OLED deal in 2018

http://appleinsider.com/articles/17...-to-supply-oled-panels-for-future-iphone/amp/

 

[samsara]

LG's focus is on OLED TV, which costs more than usd$5000 for each and far from being affordable and hence main stream market and being profitable . That's why they need 10-gen fab line instead of more main-stream 5.5/6 gen line which is tuned for mobile phones. hopefully you already got the basic sense that higher gen fab line only means larger panel size, not necessarily more advanced tech. The dominant power in OLED now is Samsung, who is running 5.5 and 6 gen OLED lines. LG is weak on this field.

China's BOE already installed a 5.5 gen OLED line, started building two 6 gen OLED lines in 2016, and are talking with Apple for the iphone OLED deal in 2018

http://appleinsider.com/articles/17...-to-supply-oled-panels-for-future-iphone/amp/

Good rectification that the higher gen gimmick does not necessarily mean the more advanced tech as some suggested.
He he we all must be way richer to afford the $5,000 TV set, nowadays I can get a 60" flat screen, Full HD at range of $600-800. Bigger than that will create room space issue... that's why need to be way richer lol

But of course any one can brag for his affordability... a decade ago or so one could buy the VERTU phone (a subsidiary of Nokia) decorated with diamonds and/or gold plated at around $8,000 to $10,000 a piece, and one was automatically upgraded to "certain class" if he or she was seen holding that blink blink phone. I think it just has much similar effects to other luxurious items such as Hermes, LV, etc.

 

[jhungary]

LG's focus is on OLED TV, which costs more than usd$5000 for each and far from being affordable and hence main stream market and being profitable . That's why they need 10-gen fab line instead of more main-stream 5.5/6 gen line which is tuned for mobile phones. hopefully you already got the basic sense that higher gen fab line only means larger panel size, not necessarily more advanced tech. The dominant power in OLED now is Samsung, who is running 5.5 and 6 gen OLED lines. LG is weak on this field.

China's BOE already installed a 5.5 gen OLED line, started building two 6 gen OLED lines in 2016, and are talking with Apple for the iphone OLED deal in 2018

http://appleinsider.com/articles/17...-to-supply-oled-panels-for-future-iphone/amp/

nope, each generation is not just about the mother fab size (althought they are indeed one of the reason why the mother substrate, which is what it called) The major technology challenge for next gen larger Fab is the scaling, you can build a mother substrate as big as a football field, but the problem is that it will have to scale up and down in order for your line to produce large ans small screen.

Also, another challenge for Larger Fab is the inherit Blue OLED defiency, the larger a fab goes, the harder for Blue OLED, you cannot scale up if you did not take care of the Blue OLED techology. To make a larger Fab without losing the effeciency in itself is merely more than just a "Large Panel Size"

Each different gen can cut into different size, so higher gen not just service larger panel, purposed P10 factory will be able to produce both TV Screen for different size and also all other application including Smartphones

http://www.androidauthority.com/lg-krw-10-trillion-oled-investment-658365/

The new manufacturing facility will be known as the P10 plant and will be the size of 14 football fields, reaching 100 meters tall. The P10 plant is expected to cover manufacturing of a wide range of panel sizes and is stated to be used for the production of large OLED panels for the TV market, along with smaller flexible OLED displays for the smartwatch and automotive markets. The first KRW 1.84 trillion covers the basic building of the plant, while LG’s total investment in the new facility is expected to reach more than KRW 10 trillion ($8.71 billion) as production scales up.

What you refer to is called "Flexible (AM)OLED" which is currently limited to make in 6th Gen Line.

Also, LG is not "Weak" in 5/6 gen production. Infact, LG have the also been focus on 5 and 6 gen fab size, all of them located in Korea.

And Finally, LG OLED TV are no longer selling for $5000 USD per sceen since 2015. I recently just for a LG 55 inch OLED TV for les than 3500 AUD, which is about 2700 USD. If you don't want the Curved one, it's only selling for 2998 AUD which is less than 2300 USD

https://www.jbhifi.com.au/?q=LG OLED&

For 5000 USD, I can get a 75 to 80 inch OLED TV, and why would I want that? I would probably want a 65 inch curve TV , they are selling for 5900 AUD in the Good Guys

Your OLED knowledge is simply outdated.

 

[qwerrty]

gen 8.5 is not necessarily more advanced than gen 4 or gen 5. core technology is same for all generations production lines. new production line is determined by the company’s product positioning and market demand.

 

[zeronet]

nope, each generation is not just about the mother fab size (althought they are indeed one of the reason why the mother substrate, which is what it called) The major technology challenge for next gen larger Fab is the scaling, you can build a mother substrate as big as a football field, but the problem is that it will have to scale up and down in order for your line to produce large ans small screen.

Also, another challenge for Larger Fab is the inherit Blue OLED defiency, the larger a fab goes, the harder for Blue OLED, you cannot scale up if you did not take care of the Blue OLED techology. To make a larger Fab without losing the effeciency in itself is merely more than just a "Large Panel Size"

Each different gen can cut into different size, so higher gen not just service larger panel, purposed P10 factory will be able to produce both TV Screen for different size and also all other application including Smartphones

http://www.androidauthority.com/lg-krw-10-trillion-oled-investment-658365/



What you refer to is called "Flexible (AM)OLED" which is currently limited to make in 6th Gen Line.

Also, LG is not "Weak" in 5/6 gen production. Infact, LG have the also been focus on 5 and 6 gen fab size, all of them located in Korea.

Also, LG OLED TV are no longer selling for $5000 USD per sceen since 2015. I recently just for a LG 55 inch OLED TV for les than 3500 AUD, which is about 2700 USD. If you don't want the Curved one, it's only selling for 2998 AUD which is less than 2300 USD

https://www.jbhifi.com.au/?q=LG OLED&

FOr 5000 USD, I can get a 75 to 80 inch OLED TV, and why would I want that?

Your OLED knowledge is simply outdated.

I am not an expert on OLED, however all my writings on OLED did not have to refer to Google except some links I put and some accurate data, unlike somebody who claimed himself more knowledgeable while ironically implied higher gen equal to higher tech just a few lines before. Come on, everybody can Google, please don't play superficial tech words unless you really know what you are talking about.

 

[jhungary]

I am not an expert on OLED, however all my writings on OLED did not have to refer to Google except some links I put and some accurate data, unlike somebody who claimed himself more knowledgeable while ironically implied higher gen equal to higher tech just a few lines before. Come on, everybody can Google, please don't play superficial tech words unless you really know what you are talking about.

I never claim I am an expert on anything, even with Military Knowledge. I read a lot, and all my information are either from IEEE or OLED-info.com.

I read them beucase, as I said, I recently bought an OLED TV, i want to know how it different then the Samsung 7-series I have my eyes on, instead of going to a shop and ask the tech person, which i am almost entirely sure I will be lied to. I look up and beef up the knowledge myself.

You too or anyone can check the stuff that I wrote. And Higher Gen indeed equal to higher tech according to OLED-info because of the challege laid ahead for larger panel. Here are the quote they said on their webpage.

The are still many challenges facing the OLED industry. Here's a list of some of the major ones:

• Material lifetime and efficiency (especially of the blue material)
• Soluble OLED material performance and production processes
• Flexible OLED encapsulation
• Better backplane materials for flexible OLED
• Scaling of evaporation processes for direct-emission OLEDs beyond Gen-6

http://www.oled-info.com/oled-technology?page=0,1

I did not make up these point (Regarding the scaling and Blue OLED), these "OLED-expert" make up these point so for me to understand the technology and I can choose between OLED or LCD TV. If you have any problem or question regarding these point, take it up to the IEEE and the OLED-info panel.

And I do just bought an OLED from Jb-Hifi for less than A$3500 and I did not spend $5,000 USD like you said, you want to look at the receipt?

 

[Viet]

I have always said Viets are primitive primates no different than baboons burning down factories, vandalism. That's the risk South Korean companies are taking when establishing factories there. I actually am happy how riot broke out at Samsung plant lol, South Koreans don't deserve sympathy from us because they refuse to listen to China & Russia's warnings. Please more riots, you guys are doing us a favor.

Vietnam would reach high income status in 30 years. Should thing run better, we will reach in 20 years. If I was you, I would wish a prosperous Vietnam because it is good for China, too. Hoping riots to slow down Vietnam progress is very short sighted.

Think about it.

 

[terranMarine]

Vietnam would reach high income status in 30 years. Should thing run better, we will reach in 20 years. If I was you, I would wish a prosperous Vietnam because it is good for China, too. Hoping riots to slow down Vietnam progress is very short sighted.

Think about it.

Are you blind? I said i was happy riot broke out in South Korean factories because of the THAAD issue. Nothing to do with Vietnam

 

[Viet]

Are you blind? I said i was happy riot broke out in South Korean factories because of the THAAD issue. Nothing to do with Vietnam

you are happy if Chinese rioters burn down Korean factories? ok if so, have fun.

 

[bobsm]

Seoul: Stocks hit 2-week low; anxiety over missile-defence system deepens
Friday, March 3, 2017 - 11:13

[SEOUL] South Korean shares dropped to a two-week low early on Friday as reports came in that China had ordered tour operators to stop selling trips into the country, amid rising tensions over the deployment of a US missile-defence system.

China has expressed anger over South Korea's moves to deploy the missile system, which Seoul and Washington say is designed to thwart the threat of attack from nuclear-armed North Korea, but which Beijing says is targeted at China.

Seoul and Washington agreed in July on the deployment of the US Terminal High Altitude Area Defence (Thaad) system.

The Korea Composite Stock Price Index (Kospi) was down 1.2 per cent at 2,077.26 points as of 0233 GMT, its lowest since Feb 17.

"Shares of the companies that are linked to this issue, such as cosmetics and tourism, are reacting sensitively, pressuring the whole index," said Bae Sung-young, a stock analyst at Hyundai Securities.

Amorepacific Corp fell as much as 7.8 per cent to its lowest since early February of 2015, marking the biggest intraday percentage loss since Oct 25, 2016.

Shares of Hotel Shilla, a hotel and duty-free retail unit of the Samsung Group, also tumbled as much as 13 per cent.

Decliners far outnumbered advancers by 676 to 133 on the bourse.

The downward trend of shares in related sectors is likely to continue as long as the Thaad issue remains unresolved, though a sudden drop in the main bourse from this issue alone will be unlikely, Bae said.

Offshore investors offloaded a net 45.8 billion won (S$56.4 million) worth of Kospi shares near mid-session.

The South Korean won slipped 1 per cent to its lowest in nearly three weeks on growing expectations the US Federal Reserve would hike interest rates in March, and ahead of a speech by Fed Chair Janet Yellen later in the global day.

The won was quoted at 1,154.0 against the US dollar, down 1.1 per cent compared with Thursday's close of 1,141.6. It was the lowest intraday level since Feb 13.

March futures on three-year treasury bonds were unchanged at 109.41.

REUTERS
http://www.businesstimes.com.sg/sto...w-anxiety-over-missile-defence-system-deepens