Samsung started sourcing OLED panels from LG this month

Last month’s reports indicated that following a protracted tug of war, Samsung has resumed negotiations with LG regarding the supply agreement for W-OLED panels, deliberating on the initial volume of supply. LG is likely to commence the supply of W-OLED panels to Samsung from this quarter, likely for utilization in 77-inch and 83-inch televisions.

As The Elec reported earlier this month, Samsung Electronics has already placed orders for W-OLED panels from LG, explicitly for the 77-inch and 83-inch dimensions. However, the scale of procurement is modest, likely to be incorporated into television models launching later this year. Samsung will not be left waiting, as LG is capable of delivering these W-OLED panels within this month.

Sources reveal that a comprehensive collaboration agreement has yet to be signed between the parties, which would detail the specific volume of procurement and the timeframe. This transaction is more experimental in nature. Although the demand for televisions soared during the outbreak of the COVID-19 pandemic, it began to recede post-2022, causing Samsung to tread with utmost caution.

Samsung also hopes LG can develop W-OLED panels that meet its requirements, but the two have not reached a consensus on who will bear the product development and marketing costs. Contrary to popular perception, for televisions sold through some distributors, the marketing costs are sometimes borne by the television manufacturer, and at other times by the panel manufacturer.

Moreover, Samsung has requested that LG manufacture these panels in its Paju factory in Korea, rather than in Guangzhou. Should Samsung’s new products be launched this year, the projected shipment volume stands at 300,000 units.