Samsung to get 2 million unit supply from LG Display of 77 inch to 88 inch OLED TVs

LG Display promised to supply 2 million units in the coming year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said. Initial supplies to Samsung would likely be 77-inch and 83-inch white OLED (WOLED) TV panels.

The unanimous name of LG Display, one of South Korea’s largest company will start supplying high-end TV panels to Samsung Electronic from as early as this quarter, three sources said, in a deal that would help the loss-making flat-screen maker turn profitable. LG Display promised to supply 2 million units in the coming year and boost shipments to 3 million and 5 million units in subsequent years, two sources with direct knowledge of the matter said. Initial supplies to Samsung would likely be 77-inch and 83-inch white OLED (WOLED) TV panels.

For Samsung, the deal brings to the purview, how it is looking to expand in high-end organic light emitting diode (OLED) TVs as competition heats up in the lower end with Chinese vendors. OLED panels cost nearly five times more than liquid-crystal display (LCD) panels. It is a calculated move as with this deal, Samsung could overtake Sony as the second largest supplier of OLED TVs globally. Analysts have also speculated that LG Display was in talks to supply OLED TV panels to a new client. Reuters being the first to report details of the deal with Samsung Electronics. Samsung Electronics, known to be the world’s biggest TV manufacturer, has been slower than growing rival LG Electronics Inc in embracing OLED TVs, arguing the technology is more suited to small devices such as smartphones and tablets, partly due to the high cost of panels. For LG Display, shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion (roughly Rs. 12,300 crore) and amounting to around 20 percent to 30 percent of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts.

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The company till now, has been running its OLED factory below full capacity due to a limited customer base and as a pandemic based demand surge for new TVs has declined amidst the soaring inflation and slowing economy. LG Display supplies OLED TV panels to LG Electronics and Sony. It also supplies smartphone displays to Apple Inc. Samsung Electronics also has its self display-making unit Samsung Display which focuses on OLED screens for mobile phones made by Apple and Samsung.