Apple supply partner LG Display, the sole supplier of OLED screens for the Apple Watch, is planning on spending up to $4.2 billion to build a new OLED factory in Paju, South Korea. The company expects demand for the screens to increase over the next few years.
The company expects to need the capacity from 2017 on, said Korea’s Digital Times, quoted by Taiwan’s DigiTimes. Talks will reportedly be held later this month to finalize the decision and its details.
LG Display’s OLED panels are used in a number of electronic devices, such as tablets, phones, and televisions. OLED screens are considered to be superior when it comes to visual quality, power consumption, and durability, but are also more expensive to produce than other types of screens.
While the Apple Watch is currently the only Apple device to use OLED screens, a number of rumors have indicated the company could switch to OLED screens for its iOS device within the next few years. However, well-connected KGI Securities analyst Ming-Chi Kuo was quoted earlier this month as saying Apple is unlikely to adopt OLED displays for use in its iPhone lineup any time soon.