Samsung may join hands with LG for increasing OLED supply

Samsung participated in the 2022 OLED KOREA CONFERENCE held in Busan from the 7th to the 8th of April 2022. It is predicted that Samsung Electronics will launch a TV using LG’s large display in September.

‘TheElec’ reportedly revealed that at this conference held in Busan on the 7th of April 2022, Lee Choong-hoon, CEO of UBI Research, predicted that “Samsung Electronics will start selling LG Display’s large white (W)-OLED TVs around September 2022.”

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Samsung needs to be sure of the production capabilities of LG Display. LG is also looking for Samsung to sign a secure contract for at least 3-5 years of the term because for providing this W-OLED display to Samsung it has to do a larger amount of investment in its production line and put more effort to increase production capacity.

It is estimated that Samsung Electronics will purchase up to 1.5 million units of large OLEDs from LG Display this year. The negotiations for the supply contract between the two countries have already been delayed. Therefore there is a possibility of the supply forecast to increase at least by 20 percent.

The current QD-OLED yield of Samsung is 50 to 60 percent. If it increases and achieves a yield of 70 percent will be selling 880,000 units of the QD-OLEDs for TVs and 440,000 for computer monitors. In order to increase the shipment till 2024 larger investment is needed by Samsung.

However, according to forecasted data Samsung Electronics OLED shipments to reach 11.3 million units this year. Samsung setting an arrangement to make additional QD-OLED investments can also act as a variable for LG Display’s profitability. In the conference, various factors were also discussed that why Samsung Electronics and LG Display should consider concluding a W-OLED supply contract.