LG Display has finalized its list of key equipment suppliers for its new Organic Light-Emitting Diode (OLED) infrastructure project. In a move closely watched by the industry, Sunic System has been selected to provide the critical OLED evaporators, while Avaco will supply the deposition logistics systems and low-damage sputtering equipment.
Industry sources confirmed on May 14 that LG Display recently completed the selection process for its 1.106 trillion KRW (approx. $810 million) investment plan announced last month.
The most significant takeaway is Sunic System's victory in the 6th-generation (6G) OLED evaporator category. The Korean firm successfully beat out Japan's Canon Tokki, the traditional heavyweight that has long held a near-monopoly--over 90% market share--in the 6G mass-production equipment market. While this specific order is designated for next-gen technology development, it carries immense weight as these tools are precursors to future mobile OLED mass production. Currently, Sunic System and Canon Tokki are the only two players globally with the proven technical capability to produce Fine Metal Mask (FMM) OLED evaporation equipment.
For deposition logistics, LG Display chose Avaco over LG's own Production Engineering Research Institute (PRI), which had strongly pushed for the contract. Avaco's track record--including a prior collaboration with Sunic System to supply 8.6G OLED deposition equipment to BOE's B16 plant in China--likely played a decisive role. Additionally, Avaco will supply “low-damage” sputters, specifically Transparent Conductive Oxide (TCO) sputters, which are essential for realizing next-generation four-sided curved (quad-curve) displays.
“The selection was finalized around the 8th of this month, and the vendors have been notified,” said an official familiar with LG Display's operations. “Purchase Orders (POs) are expected within a month, with equipment delivery targeted for the first half of next year.”
LG Display is moving at a rapid pace, finalizing suppliers just one month after its investment disclosure. Although the timeline for equipment delivery is slightly behind the original “end-of-year” goal, the move to a first-half 2026 delivery ensures that R&D and mass production for new technologies slated for 2028 remain on track.
Separately, LG Display is continuing to execute its 1.26 trillion KRW investment announced last June. That capital is being split between front-end panel lines in Paju (700 billion KRW) and back-end module lines in Vietnam (560 billion KRW), with a completion target of June 2027.
