LG Display (LPL)

Focus on large-size TFT-LCD panels while maintaining a broad product portfolio

Our strategy is to leverage our product technology, timely investments and advanced manufacturing capabilities to lead the market in emerging large-size product categories that offer higher growth potential and higher margins, and help shape industry standards in product features such as size and resolution.

Currently the TFT-LCD television market is experiencing strong growth. We began shipping television products in 2001 with 15-inch panels and have since broadened our product portfolio to include panels of various sizes, such as 17-inch, 26-inch, 32-inch, 37-inch, 42-inch, 47-inch and 55-inch panels. We were one of the largest merchant supplier in the television category in terms of both units sold and sales revenues in 2006, 2007 and 2008, based on data from DisplaySearch, and we continued to lead the market in introducing larger and higher-performance panels for televisions. For example, we were the first to develop 42-inch wide-format and 55-inch wide-format high-definition television panels and 100-inch wide-format full high-definition television panels.

The desktop monitor market is currently transitioning from 17-inch and 19-inch to larger panel sizes such as 20-inch and 22-inch, and from 16:10 wide-format to 16:9 wide-format. We believe we are well positioned to capitalize on this opportunity with our full product line-up. We plan to maintain our leadership position in the premium 20-inch and above desktop monitor category, where we were the first-to-market with products such as 20-inch UXGA, 23-inch WUXGA and 30-inch WQXGA+. In addition, we have successfully established the industry standard for 16:9 wide-format in the categories of 18.5-inch, 20-inch, 21.5-inch, 23-inch and 27-inch wide-format display panels for desktop monitors. In 2008, we developed wide-format high-definition display panels in the categories of 18.5-inch, 23-inch and 27-inch display panels for desktop monitors. We also developed a 22-inch e-In Plane Switching, or e-IPS, display panel that retains the superior performance qualities of conventional IPS panels but is also competitive in terms of cost. We are currently developing 20-inch, 21.5-inch, 23-inch, 24-inch wide-format display panels using this technology.

The notebook computer market is also transitioning to larger and wider panel sizes, which command higher margins, and we believe we have the flexibility to increase the production and sales of larger and wider panel sizes as demand grows for such sizes. For example, in 2008, we increased the production and sales of 14.1-inch, 15.4-inch and 17.1-inch wide-format notebook panels in line with the market trend toward larger wide-format screens. We also believe that the trend for larger and wider panels for notebook computers will eventually be replaced by demands for affordable large-size flat panel products with higher resolution and higher performance qualities. Accordingly, we are continuing to develop long-term alternative technologies, such as light emitting diode, or LED, backlight technology, which would enable us to develop thinner and lighter panels that consume less power and use environmentally friendly components. For example, in 2008, we developed, and commenced mass production of, the world’s first 17.1-inch TFT-LCD panel for notebook computers that applied red, green and blue LED, or RGB LED, backlight technology. RGB LED backlight technology enabled us to develop the world’s first TFT-LCD panel that achieved a color reproduction rate in excess of 100%, offering more colors and a better contrast ratio than conventional models that used cold cathode fluorescent lamps.

We believe that our product range across the television, notebook computer, desktop monitor and other application markets is one of the broadest in the industry and that it enables us to strengthen our relationships with our end-brand customers.

Focus on large-size TFT-LCD panels while maintaining a broad product portfolio

Our strategy is to leverage our product technology, timely investments and advanced manufacturing capabilities to lead the market in emerging large-size product categories that offer higher growth potential and higher margins and help shape industry standards in product features such as size and resolution.

Currently the TFT-LCD television market is experiencing strong growth. We began shipping television products in 2001 with 15-inch panels and have since broadened our product portfolio with the addition of 20-inch conventional format as well as 17-inch, 19-inch, 23-inch, 26-inch, 30-inch, 32-inch, 37-inch, 42-inch, 47-inch, 52-inch and 55-inch wide-format panels. We were one of the largest merchant supplier in the television category in terms of both units sold and sales revenues in 2005, 2006 and 2007, based on data from DisplaySearch, and we continued to lead the market in introducing larger and higher-performance panels for televisions. For example, we were the first to develop 42-inch wide-format and 55-inch wide-format high-definition television panels and 100-inch wide-format full high-definition television panels.

The desktop monitor market is currently transitioning from 17-inch and 19-inch to larger panel sizes such as 20-inch and 22-inch, and we believe we are well positioned to capitalize on this opportunity with our full product line-up. In addition, we plan to maintain our leadership position in the premium 20-inch and above desktop monitor category, where we were the first-to-market with products such as 20-inch UXGA, 23-inch WUXGA and 30-inch WQXGA+.

The notebook computer market is also transitioning to larger and wider panel sizes, which command higher margins, and we believe we have the flexibility to increase the production and sales of larger and wider panel sizes as demand grows for such sizes. For example, beginning in 2001, there has been a greater demand for notebook computers with bigger screens, which led us to change our product mix to include more 15.0-inch panels and fewer 13.3-inch panels for notebook computers. In 2007, we increased the production and sales of 14.1-inch and 15.4-inch wide-format notebook panels in line with the market trend toward larger wide-format screens. We also believe that the trend for larger and wider panels for notebook computers will eventually be replaced by demands for affordable large-size flat panel products with higher performance qualities. Accordingly, we are continuing to develop long-term alternative technologies, such as LED backlight technology, which is thin and light and is expected to provide reduced power consumption using environmentally friendly components. For example, in 2007, we developed the world’s first 15.4-inch wide LED-applied display panel for notebook computers, the world’s largest LED-applied panel for notebook computers at the time.

We believe that our product range across the television, notebook computer, desktop monitor and other application markets is one of the broadest in the industry and that it enables us to strengthen our relationships with our end-brand customers.