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LG Display. (Photo: Yonhap News) |
[Alpha Biz= Kim Jisun] Seoul, September 15, 2025 — LG Display has initiated an expansion of its AP4 plant in Paju, Gyeonggi Province, to meet rising demand for Apple iPhone OLED panels, following the reallocation of supply previously handled by China’s BOE.
Industry observers note that this move underscores global tech companies’ renewed trust in Korean-made displays, while also highlighting opportunities for LG Display to strengthen its strategic position amid U.S.-China trade tensions and ongoing supply chain realignments.
According to a Financial News report on the 15th, LG Display established a task force (TF) last month to oversee the AP4 line expansion. The AP4 facility, a sixth-generation mobile OLED production line, processes thin-film transistor (TFT) substrates for iPhone panels.
After increasing monthly capacity from 30,000 to 45,000 units in late 2023, the company has now decided to expand production again after roughly two years. The TF is expected to finalize equipment suppliers within September and begin issuing orders in phases from October.
Industry sources view this expansion as a sign that LG Display is accelerating its transition toward OLED-focused operations. The company is expected to add 15,000 units of monthly capacity, bringing total AP4 production to around 60,000 units. Most of LG Display’s KRW 1.26 trillion OLED investment plan approved by the board in June is anticipated to be allocated to the AP4 expansion.
Mass production from the new line is expected to begin in 2026, with expanded output likely to supply the next-generation iPhone 18 series, projected for release in the second half of next year.
The expansion comes as Apple reduces its reliance on Chinese suppliers. Currently, Samsung Display supplies an estimated 50% of iPhone OLED panels, LG Display about 30%, and BOE roughly 20%. However, prolonged U.S.-China trade frictions and regulatory pressures have reshaped Apple’s sourcing strategy, creating opportunities for Korean suppliers.
Market watchers expect LG Display’s expansion to boost performance as well. The company posted an operating loss of KRW 116 billion in the second quarter of 2025, reversing gains from the previous two consecutive quarters of profitability. Nevertheless, LG Display has expressed its ambition to return to full-year profitability through OLED-centered business upgrades, with expectations rising that increased iPhone OLED orders will further stabilize earnings in 2026.
The move is also expected to benefit domestic equipment manufacturers. Suppliers such as Shinsung ENG (cleanroom systems), DMS (wet process equipment including cleaning, etching, stripping, and developing), and Jusung Engineering (oxide deposition and encapsulation equipment) are all well-positioned to secure new contracts as part of LG Display’s investment cycle.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
