Samsung and LG are amongst each other's biggest competitors in most product categories they are present in, and the growing OLED (Organic Light Emitting Diode) display panel market will likely be the next battleground for the two electronics giants from South Korea. According to a report, the two companies are each looking to make significant investments to gain a larger slice of the global OLED panel pie for themselves. While Samsung Display is reported to be investing in large OLED panel manufacturing equipment that will be installed at its Tangjeong factory in the South Chungcheong Province, LG Display is said to be considering making further investments that could potentially make them a bigger player in the smaller OLED panel market that's currently dominated by Samsung.
LG Display has already made two substantial investments over the past year to increase its market share in the small OLED panel market, but the company is said to be interested in securing a contract from American tech company, Apple, for its iPhones next year, which is what would reportedly necessitate the new investment. While major Chinese smartphone companies like Huawei and Xiaomi have already started using AMOLED panels in some of their smartphones, Apple's 2017 iPhone lineup is expected to feature AMOLED panels for the first time. LG's first small OLED production line was reportedly installed last July at the company's factory in Gumi. Subsequent to that, the company made a much larger investment to set up a new facility at Paju. While the Gumi facility cost 1.5 trillion won, the factory at Paju came up at an investment of a whopping 10 trillion won, and will reportedly be the center for LG's flexible OLED panel manufacturing.
Presently, Samsung dominates the market for smaller OLED panels that typically go into smartphones and tablets, while its compatriot, LG, leads the market for larger OLED displays that are used in televisions. Overall, however, Samsung's got a stranglehold of the rapidly-expanding OLED panel market with a 95% share, but it's understandable why LG is making a play for it, because the market is said to be worth as much as $25 billion by the end of this year itself. Meanwhile, Samsung is said to be conducting field tests on eighth-generation OLED panel production technology before investing a reported two to three billion won on its all-new large OLED production line in Tangjeong.