Samsung Electronics is in talks with competitor LG Display for the purchase of display panels amid its transition to production of next-generation display. According to the sources, Samsung Electronics and LG Display may sign a deal on LCD TV panel supply in the near future, reports Yonhap News Agency. The move came after Samsung Display, a display maker under Samsung Electronics, announced earlier this year that it will discontinue its LCD screen production from next year and will speed up its shift toward quantum-dot (QD) display.
After Samsung Display announced its plans to stop the production of LCD panels completely, it was being reported that Sharp will carry on the duty to supply LCD panels to Samsung Electronics. However, Sharp alone can’t provide enough panels to fulfill Samsung’s needs. Now, it is being reported that Samsung is planning to source LCD displays from LG Display.
According to a new report coming out of South Korea, Samsung Electronics is in talks with LG Display for the purchase of LCD panels for its affordable TVs. A deal may be signed in the near future, and LG’s supply volume could be worth anywhere between KRW 1 trillion (around $832.91 million) and KRW 1 trillion (around $1.66 billion).
Earlier, it was being predicted by industry insiders that Samsung could source LCD panels from Chinese firms, China Star Optoelectronics and BOE, and from Taiwanese firm Sharp (now owned by Foxconn). However, it looks like Samsung prefers its rival LG over other firms. LG Display plans to supply large-sized LCD Panels to Samsung from its plant in Guangzhou, China.
This isn’t the first time LG is coming to Samsung’s rescue, though. The South Korean firm had supplied 65-inch and 75-inch LCD panels to Samsung in 2017 after Sharp had abruptly stopped supplying display panels for Samsung TVs. LG and Samsung are fierce rivals in the TV space, with the former claiming its OLED TV technology to be superior, while the latter claiming the same about its QLED TVs.
Analysts expect that LG Display’s supply volume to be worth between 1 trillion (US$833 million) and 2 trillion won if the deal is secured. LG Display plans to supply large-size LCD panels from its plant in Guangzhou, China. Samsung and LG are rivals in the TV industry, with the former representing QLED TV and the latter spearheading OLED TV. However, history shows the two sides can work as partners. In 2017, Samsung Electronics received LCD screens for 65-inch and 75-inch TVs from LG Display after Sharp abruptly decided to cut its display supply.