The supply deal that would see LG Display provide Samsung Electronics with liquid-crystal display (LCD) panels for TVs will likely fall through, industry sources said on Sunday. The two South Korean tech giants were reportedly looking to conclude their negotiations by early April but have failed to do so over some major differences, and the stalemate is unlikely to be resolved anytime soon, the report reveals. While LG Display reportedly agreed to supply the biggest domestic rival of its sister firm LG Electronics with LCD panels earlier this year, both parties are either unwilling or unable to fulfill the terms of the deal that the other side is proposing. LG Display is said to still be waiting for Samsung Electronics to provide it with specifications of the LCD panels that it's looking to acquire as the Samsung Group-owned tech giant has yet to reach an internal agreement over the kind of panels it's seeking to purchase.
Industry sources also claim that LG Display is still debating whether supplying a domestic rival with LCD panels makes sense at this particular point in time when demand for such products is high and finding clients is anything but difficult. Likewise, the two companies reportedly cannot agree on the manner in which they would conclude their theoretical supply deal as LG Display is said to be looking for a Memorandum of Understanding (MOU) while Samsung Electronics is adamant to sign a traditional supply contract that is legally binding.
The supply deal that the companies are currently negotiating pertains to between 700,000 and one million LCD panels that LG Display was initially supposed to start delivering in July, but given recent developments, that time frame will be pushed back to at least September even if the firms eventually reach an agreement, industry watchers say. Due to that state of affairs, the deal will likely fall through seeing how Samsung was seeking to utilize LG Display's panels in products that it intended to sell on Black Friday in late November, which won't be possible if it doesn't start receiving the panels by July. The South Korean tech giant initially started looking for a new LCD supplier last year after Sharp — which provided it with 4.5 million LCD panels annually — dropped it as a client.