Following lengthy negotiations, LG Display and Samsung Electronics have reached a deal under which LG Display will supply millions of WOLED panels for use in Samsung TVs.
This is according to Reuters who had the news confirmed by three sources. LG Display aims to supply 2 million panels in 2024 and boosts deliveries to 3 and 5 million panels in the following years.
The first panels could be supplied as early as this quarter, but it is unclear if these are intended for testing and product development or product launches later in 2023.
- "LG Display aims to supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said. Initial supplies to Samsung would likely be 77-inch and 83-inch white OLED (WOLED) TV panels," Reuters reported.
LG Display's current line-up of OLED TV panel sizes. Photo: FlatpanelsHD
Big consequences
This is major news that will have big consequences for the market as a whole, LG Display, Samsung Electronics and even LG Electronics – the consumer brand.
It will accelerate Samsung's transition from ageing LCD panels to modern OLED panels in TVs and put Samsung in position of strength to capture more sales in the high-end segment from LG Electronics, Sony, and others.
Samsung Display has ended production of LCD panels forcing Samsung Electronics to buy panels from Chinese LCD makers, but has on the other hand started producing QD-OLED panels. Samsung Display's current QD-OLED production capacity is not high enough for Samsung Electronics to switch over from LCD and production costs of QD-OLED panels are also significantly higher than those of WOLED.
Also read: Chinese display makers threaten LG & Samsung's dominance, warns UBI
Could push Samsung ahead of Sony
Samsung Electronics currently has a 6.1% market share in OLED TVs, behind LG Electronics with 54.6% Sony with 26.1%, according to market research firm Omdia. The deal could push Samsung ahead of Sony.
For LG Display, the partnership makes sense as it is currently running significantly below production capacity on both of its OLED TV factories in South Korea and China, so it needs additional buyers. LG Display has also delayed its 10.5G factory for 'super-sized' OLED TVs.
- "For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20%-30% of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts," said Reuters.
- Source: Reuters
