April 20, 2024

• 

[THE INVESTOR] Top executives of Samsung Electronics and LG Display admitted that the two firms were positively discussing partnership on liquid-crystal display panels whose supply is expected to tighten in the coming months following Sharp’s supply halt to rivals.

“We are seeking ways for a long-term partnership,” LG Display CEO and Vice Chairman Han Sang-beom told reporters at the Consumer Electronics Show in Las Vegas on Jan. 4.

“If we supply the panels, it won’t happen within the first half of this year considering diverse technical development needed to be made.”

 

LG Display CEO and Vice Chairman Han Sang-beom (center) speaks at a press conference during the Consumer Electronics Show in Las Vegas on Jan. 4.

Earlier some critics had said Samsung was unlikely to purchase LG’s LCD panels considering they use different manufacturing technologies.

“Nothing has yet been decided but we are discussing the issue seriously,” Samsung Electronics’ TV chief Kim Hyun-seok also said in a separate meeting with reporters.

In September, Sharp, owned by Taiwan’s Hon Hai Group, more widely known as Foxconn, notified Samsung about its supply cut of LCD panels from this year. Right after the short notice, Samsung asked to purchase panels from LG Display.

Sharp, which produces an annual 10 million TV panels, supplied larger 40-, 60-, and 70-inch panels to Samsung. Shipments to the Korean tech giant made up almost half the total production.

Industry watchers predict LCD prices could surge in the coming months considering Sharp has also recently informed Sony about the supply halt.

Crosstown rivals Samsung and LG have rarely shared key parts as they compete fiercely in almost every sector, including displays and electronics.

Samsung is also said to be discussing with LG Chem to use smartphone batteries for its upcoming Galaxy S8. Following the Note 7 fiasco, the company is seeking to diversify battery suppliers other than Samsung SDI and ATL.

By Lee Ji-yoon (jylee@heraldcorp.com)