Concern for the global smartphone market determined LG Display to cut $2.7 billion from its investment plans to 2020. “It is a conservative approach resulting from uncertainty around the mobile market”, said Don Kim, LG’s chief finance officer, in an earnings conference call.
LG Display is a key Apple supplier, but not the only one that rethinks its investment strategy. Last week, another key Apple supplier, TSMC (Taiwan Semiconductor Manufacturing Co Ltd) has revised its revenue and investment estimates.
However, the reduced investment plan will not slow down LG‘s efforts to shift from its main LCD business to next-generation OLED panels. The organic light-emitting diode segment will still get its planned $17.7 billion, which mens that the cuts will be mainly affecting the LCD side of the business.
LG Display also noted that, because of trade disputes between Washington and Beijing, the company might adjust production in South Korea and China.