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LG Display wins China's approval to open OLED factory

The Guangzhou plant will focus on TV panels.

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LG Display has the all-clear to open a new factory in China.

David Becker / Getty Images

LG Display got Chinese government approval to build an OLED display factory there, the company said Tuesday.

The plant in Guangzhou will mainly produce OLED (organic light emitting diode) panels for TVs. The factory will initially aim to produce 60,000 panels each month and then gradually ramp up to 90,000 per month.

The factory will built with 2.6 trillion won ($2.33 billion) in capital. South Korea-based LG has a 70 percent stake. The Guangzhou Economic and Technological Development District controls the other 30 percent.

LG expects to start of mass production in the second half of 2019.

Approval for the new plant comes weeks after LG was reported to be supplying 2 million to 4 million OLED screens for iPhones as Apple tries to lower the cost of some new models expected to launch in September.

Previously, Apple was dependent on Samsung -- its rival in the smartphone market -- for OLED displays.

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