"Product Launch as Early as July"... Samsung-LG 'OLED Alliance Rumors' Taking Shape

OLED sign lighting up the night at LG Twin Towers in Yeouido, Seoul

[Asia Economy Reporter Kim Heung-soon] There are ongoing speculations that Samsung Electronics will release TV products equipped with LG Display's organic light-emitting diode (OLED) panels within this year.

According to industry sources and foreign media on the 17th, Samsung Electronics is in talks to purchase approximately 2 million large OLED panels from LG Display within this year, and it is expected that Samsung TVs equipped with these panels will be launched in overseas markets as early as July. The industry also anticipates that Samsung Display will introduce Quantum Dot (QD)-OLED TVs, which it mass-produces, to the market this year, thereby strengthening its OLED TV business.

Speculation about an alliance between Samsung and LG regarding OLED panel supply has been ongoing since last year. Especially at CES 2022, the world's largest electronics and IT exhibition recently held in Las Vegas, USA, Samsung Electronics Vice Chairman Han Jong-hee (Head of the DX Division) mentioned regarding the purchase of LG Display's large OLED panels that "all possibilities are open," fueling continuous expectations that collaboration may soon materialize.

LG Display exclusively supplies large OLED panels to more than 20 TV manufacturers worldwide. While the liquid crystal display (LCD) panels, which have been the mainstay of the TV market, have seen growth slow due to price declines and shipment decreases, demand for OLED panels has steadily increased. After shipping 3 million units in 2018, the scale grew to 8 million units last year, and an annual production capacity of 10 million units is anticipated this year. Accordingly, LG Display's OLED panel business posted a profit of approximately 200 billion KRW in the fourth quarter of last year, and the industry estimates it will achieve an annual profit of around 700 billion KRW this year.

However, Samsung Electronics stated regarding the release of TV products equipped with LG Display's OLED panels that there is "no change from the previous position of 'keeping all possibilities open,' and the purchase decision has not yet been finalized," drawing a line against overinterpretation.