Senior management of Samsung and LG Display agreed to supply OLED: Report

Recently, LG Electronics officially announced that it is closing the smartphone business to focus on other tech fields in the industry. Now, a piece of new information coming from South Korea, which suggests Samsung Electronics is collaborating with LG Display to get OLED panels.

According to the news, a committee led by senior members of Samsung Electronics and LG Display has recently met and agreed to supply OLEDs. Moreover, the report suggests that only working-level consultations are left to finalize the details.

However, the supply scale is predicted to be 1 million units in the second half of this year and 4 million units next year. It is worth mentioning that this year, LG Display’s production capacity is expected to be 8 million units, which is quite huge.

If this information becomes true, then it will be the first time when two rivals, Samsung and LG are partnering for OLED screens. Though, the recent surge in LCD prices is the background of Samsung Electronics reaching out to LG Display.

It was said that, as Chinese companies holding the lead in the production of LCD panels are raising prices one after another, LCD-free has become an important task in securing profitability. Besides, Samsung Display had to cooperate with LG as the yield of QD OLEDs that the former is preparing for production was also a problem.

“The meeting between the executives of the two companies in the past was led by the government, but this time it is meaningful in that it is a voluntary meeting. It will be a win-win deal for both Samsung and LG,” said an industry insider.

“The official position is that it is not true because it has not been confirmed. However, with regard to securing parts, it is the basic policy to review competitors without restricting them,” said Samsung Electronics.

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