Today, April 9, representatives of the South Korean news publication MTN, citing their sources, reported that Samsung Electronics has signed a partnership agreement with LG Display for an impressive supply of OLED panels. At the moment, there is no official statement or comments from any of the companies, but insiders report that there are only a few working points left to approve before the transaction is completed. Importantly, this is the first time Samsung, itself a leader in display design and manufacture, has used LG OLED panels.
Also, the South Korean media shared additional information about the terms of the contract, which was provided by their source. If you believe this information, in the second half of this year Samsung will buy at least one million OLED panels from LG, while in 2022 the manufacturer plans to quadruple the volume of the ordered batch. That is, next year LG will release at least 4 million OLED panels for Samsung, which is about half of the manufacturer’s production capacity. The insider does not have information about further partnerships or orders for 2023 – perhaps the contract is registered only for two years.
Analysts of this market reacted quickly enough to the information provided, saying that Samsung was forced to enter into a partnership agreement with its direct competitor due to the rise in prices for LCD panels from manufacturers from China. For example, as of the first quarter of 2021, the cost of one 55-inch LCD in China was $ 200, which is 74% more expensive than a year earlier. What’s more, panel prices are expected to rise another 10% in the second quarter, so Samsung had to order panels from LG to keep its TV business profitable.
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