Katarzyna Petru
The production cost of 65-inch OLED panels has halved since 2020, and the downward trend will continue. The market is entering a new phase, as LCD panels with RGB LED backlighting are also making a comeback.
13 years of waiting – and finally a breakthrough?
When the first OLED televisions hit the market, the industry promised that their production would be cheaper than LCD in the future. Thirteen years have passed, and consumers have still been waiting. Now, however, it seems that the promises are starting to be fulfilled.
Costs Halved in 5 Years
LG Display produces OLED panels in two factories: in Paju (South Korea) and in Guangzhou, China. The factory there is already two-thirds paid off (depreciated), significantly lowering production costs.
Additionally, there are more cost-cutting initiatives – the effects are clearly visible. In 2020, producing a 65-inch OLED panel cost around 1000 USD. A year ago, it was already 600 USD, and this year the value is expected to drop below 500 USD. Further reductions are forecasted for 2026.
Production Costs of 65” OLED (estimates)
Year | Cost in USD | AUD | EUR | GBP | PLN |
|---|---|---|---|---|---|
2020 | $1000 | ~1530 | ~920 | ~790 | ~4300 |
2024 | $600 | ~920 | ~550 | ~475 | ~2580 |
2025 | <$500 | ~760 | ~460 | ~395 | ~2150 |
2026 | even lower | forecast of further decline |
(approximate conversions based on average rates: 1 USD ≈ 1.53 AUD / 0.92 EUR / 0.79 GBP / 4.30 PLN)
The Korean newspaper Biz Chosun reports that LG Display has focused on expanding production lines and improving efficiency over the past two to three years. The result? A 30% reduction in costs year on year. For 2026, the company is preparing additional cuts, including through a new design of the DDI (display driver IC) control circuit.
OLED vs LCD – is the situation reversing?
LG Display is still struggling with profitability, so not all savings will immediately reach consumers. However, it is already clear that the prices of large OLED TVs (77–83”) have significantly decreased in 2025.
Interestingly, the production costs of OLED panels are starting to equal – and sometimes even be lower – than those of LCD panels with RGB LED backlighting.
– “The cost of the LED diodes (RGB) that create the backlighting in such TVs accounts for most of the panel’s price,” quotes Biz Chosun from one of the industry sources. – “When you add in the drivers and electronics, it comes out to around 400–600 USD, which is similar to OLED, or even more expensive.”
Of course, traditional LCDs remain cheaper to produce, but if the trend continues, we may see a complete breakthrough in the next 5–10 years.
It looks like 2026 could be the first time in history when OLED actually becomes more cost-effective to produce than advanced LCD. And that means real chances for even cheaper TVs in stores.
