Around $8.7 billion or around 10 trillion would be spent by LG Display in order to build a large factory wherein or Organic Light-Emitting Diode (OLED) panels would be made. The company would be spending around 1.84 trillion won in order to construct a building for P10 plant in Paju, which is in South Korea. The panels would be built for large screens that are used in televisions along with small panels for smartwatches would be built by the factory.

LG would use this sum of $8.7 billion for around 3 years and the operations of this OLED panel factory are expected to start soon in the first half of the year 2018.

OLED display panels are quite important as the power consumption is reduced and devices are made thinner. Brighter colors are displayed and these panels are estimated to replace LCDs, which are used in many phones including iPhone. It is suggested by experts that Apple may opt for OLED displays for iPhones by the year 2018.

An analyst, Claire Kim states that the announcement made today is about Apple adopting OLED and its timing is set. With this investment, the competition of LG with Samsung Display would be intensified. Currently, ultrathin screens are supplied by Samsung Display to many handset makers in China and also for Samsung Electronics.

There has been a growth in the demand for iPhones quite quickly since few years and it is still expected further in years to come. This means that even the demand for these panels would be higher. Experts give their predictions that the OLED panel market would be climbing to $29.1 billion in the year 2023 and at the moment, it is at $13.

There was a rise in share price of the company by 2 percent. LG is definitely a very big supplier of these panels to Apple, but as per Kim, the high demand cannot be met by the LG factory and so, Samsung would also supply panels.