LG may supply OLED panels to Samsung from this quarter
Last year, discord arose between Samsung Electronics and Samsung Display over the pricing of QD-OLED panels. The disagreement stemmed from the affordability of LG’s W-OLED panels compared to QD-OLED panels. Samsung Electronics desired Samsung Display to match the price points offered by LG. In fact, Samsung Electronics had consistently planned to supplement its product line with LG’s W-OLED panels, but continual postponement occurred for various reasons.
Earlier this year, it was reported that Samsung Electronics had resumed negotiations with LG regarding the W-OLED panel supply agreement, discussing initial supply volumes. According to Digitimes, LG will potentially begin supplying W-OLED panels to Samsung Electronics from this quarter, likely for use in 77-inch and 83-inch televisions. It is understood that LG’s target supply volume for next year is two million, which will gradually increase to between three and five million over the following years.
Analysts suggest that the shipment of two million W-OLED panels has significant implications for LG at this stage, at least worth 1.5 billion US dollars, accounting for 20% to 30% of its OLED panel production capacity. It would gradually bring production lines, which have been operating below capacity for a prolonged period, to full production. In the recent past, factors such as the impact of the COVID-19 pandemic, severe inflation, and a global economic slowdown have led to insufficient market demand, forcing LG’s OLED panel production lines to maintain slow operation and even incur losses. This transaction with Samsung Electronics could likely turn LG’s deficit into a profit.
Samsung may seize this opportunity to surpass Sony and become the world’s second-largest OLED TV manufacturer. As the deal has not yet been made public, both LG and Samsung Electronics have declined to comment.