Tech News: Samsung and LG Enter Pivotal OLED Talks

Negotiations between Samsung Electronics and LG Display regarding the supply of large white organic light-emitting diode (W-OLED) panels beyond next year have hit an impasse.

As of last year, Chinese companies aggressively undercut the market by selling liquid crystal display (LCD) panels at reduced prices. This forced Samsung Display to completely withdraw from the LCD business in June, while LG Display (LGD) had to cut production and prepare to divest related operations. In response to these market dynamics, 三星电子 had devised a plan to ramp up the production of LG Display's W-OLED TV panels and liquid crystal display (LCD) TV panels starting this year, commencing with the 83-inch W-OLED TV panels. However, the negotiations have been progressing at a sluggish pace.

It is worth noting that Samsung Electronics is set to introduce its Mini Light Emitting Diode (LED) TV series, "Nio QLED," into its premium high-end television lineup next year. In the midst of the less-than-optimistic television market conditions, Samsung Electronics is considering limiting the production of new QLED TVs to approximately one million units. This, coupled with the need to procure QD-OLED panels from Samsung Display, inherently limits the quantity of W-OLED panels that Samsung Electronics can acquire from LG Display.

Market research firm TrendForce's August projections suggest that Samsung Electronics will ship 930,000 OLED TVs this year. Apart from models featuring LG Display's 83-inch W-OLED panels, the rest will utilize Samsung Display's QD-OLED technology. Samsung Display's QD-OLED production line is capable of manufacturing anywhere from one to two million TV-sized QD-OLED panels annually. Samsung Display also supplies QD-OLED TV panels to other companies, including Sony, albeit in relatively small quantities.

It is anticipated that LG Display's supply of W-OLED panels to Samsung Electronics this year will not exceed 100,000 units. Regarding Samsung Electronics' procurement of 83-inch W-OLED panels from LG Display, the company stated, "Since we announced our plans to release W-OLED TVs to overseas distributors, we have a need to source W-OLED panels from LG Display."

In a landscape marked by technological advancements and market dynamics, Samsung Electronics and LG Display find themselves navigating challenging negotiations. As both companies strive to remain at the forefront of display technology, the outcome of these discussions will undoubtedly shape the future of the industry. Stay tuned for further updates on this critical development in the world of display technology.

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