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By Kim Bo-eun, Kim Yoo-chul
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| Samsung Electronics' flag is seen at its headquarters in southern Seoul / Korea Times file |
"Samsung Electronics is seriously considering purchasing LG Display-manufactured OLED panels for use in its second-tier TV brands. The number of TV OLED panels that Samsung Electronics will procure could be up to 4 million," one senior industry executive said by telephone.
If the deal materializes, it would be the first time Samsung has bought OLED panels from its chief cross-town rival LG Display. TVs with LG Display's OLED panels rate consistently amongst the best in terms of professional reviews.
Regarding the possibility, a Samsung Electronics official said nothing has been decided yet at this moment.
Samsung Electronics abandoned the OLED TV business a long time ago. LG Display is supplying its OLED panels to a variety of TV producers including Sony, Vizio, LG Electronics and Chinese manufacturers. LG Display is seeing an improvement in the production yields of OLEDs ― or lower defect rates ― and the company already announced an expansion of its OLED production lines at its core display complex in Paju, northern Gyeonggi Province.
Even if the envisioned agreement is made ― the monetary value of which is estimated at a few billion dollars ― Samsung Electronics plans to employ LG-sourced OLED panels for use in its second-tier TV lineup as Samsung is pushing to move up its quantum dot OLED (QD-OLED) TV variants. Samsung's display affiliate Samsung Display is in the process of improving the picture ratio of its QD-OLEDs.
OLED TVs still remain a premium segment, but the rise in LCD prices has narrowed the price gap between OLED and LCD TVs. LCDs are illuminated by LED lighting arrays while in OLEDs each pixel serves as its own light source.
Samsung Electronics has been preparing to produce QD-OLED hybrids, which blend the company's quantum dot filter technology with panels used in OLED TVs. But it is unknown when the QD-OLED panels will enter production.
On a related note, Samsung Electronics and LG Display officials met months earlier to discuss the possible supply of OLED panels, though Samsung denied the report.
However, some industry views are that Samsung could reach an OLED agreement with LG given it has not secured its next-generation panel yet. Samsung said it could not comment on when it would begin production on its QD-OLEDs.
LG Display is forecasted to ship up to 8 million large OLEDs this year. Samsung has ranked as the global No. 1 TV brand for 15 consecutive years. LG is the second-largest player in the global TV market.
