LG Display Co., Ltd. has announced that they will be focusing their investment on organic light-emitting diode (OLED) displays to develop its next-generation screens, as the company looks to have an edge over its competitors, according to a report from Bloomberg.
The company is planning to invest about 10 trillion won, or about $8.5 billion, over the next three years.
Reuters adds that LG Display, the biggest proponent of OLED technology along with LG Electronics, is hoping that the investment in OLED can help it gain an edge over its competitors.
In addition, LG Display hopes the early investment can help it dominate the market in the next few years.
Bloomberg adds that Han Sang-Beom, CEO of LG Display, said that investing in OLED "aims to make LG Display grow as a sustainable company."
He added that the company is putting importance to "pioneer this untapped OLED market to sustain our leadership in the display industry and keep the competitors at bay."
Moreover, the report also mentioned that DisplaySearch, a market research firm, forecasts the OLED market to grow to $28.3 billion by 2022, which would be a substantial growth from its $8.7 billion last year.
Reuters adds that LG Display will be using OLED, which provides improved colour rendition and power consumption, on its TV, flexible screens of its smartphones, wearable devices, signages and cars.
The company will also be allocating some of the investment funds in premium liquid crystal display (LCD) products.
Bloomberg adds that the company is looking for new technology as it faces intense competition from Chinese manufacturers and the slowing demand for consumer electronics.
The company has been facing decreasing sales and rising prices for the LCD screens that it uses in its TVs and computers.
Based on the report, LG Display has fallen to levels not seen since 2012 as investors see a grim outlook on the future of using LCD technology.
The company's shares have declined 34 percent this year.
