LG China 78_889_1556LG Display is expected begin mass production from its Guangzhou plant in China manufacturing large-sized OLED panels in May this year, according to industry sources on Mar. 16.

This is about 3 months behind schedule, largely triggered by the spread of the coronavirus that put plant facilities on hold. Annual production targets are also likely to be altered, the sources said.

The monthly production volume at the Guangzhou plant – completed in August 2019 – is expected to stand at 15,000 panels in the second quarter, growing to 45,000 panels in the third quarter and 60,000 in the fourth quarter.

On an annual basis, this reflects a 33% decline from the company’s original goals. In 2019, LG Display had hoped to begin mass production in January this year, aiming for a monthly 15,000 panels in the first quarter, than growing to 40,000 in the second quarter, to 55,000 panels in the third quarter to ultimately hit 70,000 panels in the fourth quarter.

LG Display CEO Chung Ho-young had said in a press conference at the Consumer Electronics Show in January that optimizing yield took longer than expected, but that the firm had resolved the fundamental problems. He had also said the company would kick-start mass productions during the first quarter of 2020.

Meanwhile, other display makers are also likely to produce less during the first half of this year. Recovery, however, is expected in the latter half.

China’s BOE’s LCD production from its B17 plant is to be halved from its original forecast to 10,000 in the first quarter, followed by 25,000 in the second quarter, 45,000 in the third quarter and 80,000 in the fourth.

In December 2019, BOE had forecast the second quarter figures at a month 50,000 and third quarter at 70,000 and 90,000 in the fourth. CSOT has delayed its mass production plans at its Gen-10.5 LCD line – the T7 – to December this year from September. Overall, production of flat panel displays at China’s new plants are expected to decline on account of the coronavirus.