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Samsung to source 1.5 million OLED panels from arch-rival LG

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Last updated: December 23rd, 2021 at 12:23 UTC+02:00

Samsung Display, for the most part, is unchallenged in the market when it comes to market share. It wants to ramp up the production of OLED and foldable panels to keep up with rising demand from the industry.

However, it may have to look at alternate sources to actually get the OLED panels it needs. One of them happens to be Samsung’s compatriot and arch-nemesis.

Samsung is looking at LG to fulfil its OLED TV panel needs

OLEDInfo reports that Samsung will ask LG for about around 1.5 million OLED TV panels in 2022. However, these OLED panels are not for smartphones and are earmarked for smart TVs. Samsung will use these to ship over 2 million smart TVs in 2022, of which only 50,000 units will be sourced from Samsung Display.

Samsung’s decision to rely on LG for TV displays might come off as a tad odd, but it is understandable. The company hasn’t been a fan of OLED TVs which is why it didn’t really bother to produce panels for OLED TVs.

Samsung has largely used LCD panels for its more affordable TVs. However, the price gap between LCD and OLED panels has reduced significantly. This means Samsung can switch its affordable-tier TVs to OLED without significantly impacting its margins. It just needs to buy those panels from LG Display because unlike Samsung, it makes quite a lot of OLED panels for TVs.

All in all, we can expect to see a lot more OLED TVs from Samsung in 2022.

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Source BusinessDisplay LGSamsung Display
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