Samsung and LG are planning for a partnership in OLED panels, which is the first time that’s happening.
According to a Korean source report (via SamMobile), Samsung is considering buying OLED panels from LG Display as a hometown rival. Samsung Display and LG Display are producing high-quality panels for smartphones and other gadgets. Moreover, both have a significant role in the global market.
After shutting down the mobile division, LG is focusing on the parts of the business that are more profitable to the company. LG Display has a great capacity for producing OLED panels – roughly eight million units- and it can be a reliable supplier for Samsung. It’s worth noting that LG sold US$6.87 billion OLED panels in 2020. The new partnership with Samsung will definably adds millions of dollars to LG’s bank account.
The OLED panels bought from LG will be used at Samsung TVs and not smartphones. This has a reason. Samsung has no problem or technical difficulties in producing smartphone panels. But it has recently faced some hardships in developing the next generation of its QD OLEDs. For speeding up the production and meeting the market demands, there is no better alternative than partnering with LG.
Until the second half of 2021, LG Display should deliver over one million OLED panels to Samsung. This amount can increase to over four million units in 2022.
Samsung is a leading manufacturer in the displays and panels market, both for smartphones and TVs. Samsung’s dominance even made other manufacturers like Oppo, Xiaomi, and Google outsource developing their foldable panels to Samsung Display.
Samsung and LG partnership is a historic deal
This is definitely a historical partnership between these two giant Korean display providers, but it should not surprise you. This is not the first time that Samsung is moving to LG to buy panels.
In July 2020, some sources reported that Samsung wants to buy LCD panels from LG Display. This came on the heels of a report that Samsung has stopped producing LCDs and shifted its focus to QLED panels. Of course, Samsung will continue selling LCD devices, and it is just supplying panels from another source.
Anyway, the growing demands for LCD panels have caused a significant price increase in the global markets. OLED panels could be a safe alternative to LCDs and help companies to reduce production prices. Moreover, Since LG has a brilliant track record in producing these types of panels, it can be the best partner for Samsung.