[THE INVESTOR] Tech giant Samsung Electronics will increase its reliance on crosstown rival LG Display to secure a stable supply of LCD panels this year to keep the premium image of its TVs, according to sources on April 13.
“LGD’s panel supply to Samsung will gradually increase this year as there is almost no alternative for the tech giant, especially, in the high-end LCD segment,” an official from the display sector told The Investor.
The Korean tech giant turned to the display firm after Japanese LCD producer Sharp, owned by Taiwanese manufacturing giant Foxconn Technology Group, decided to cut its ties with Samsung in December, 2016.
LGD’s initial plan was to offer 1.52 million LCD panels to Samsung, but it was delayed due to a tug-of-war between the two companies until last year.
“LGD wanted to have a long-term contract to supply its products in bulk while Samsung wanted a smaller batch,” the official said.
The two are said to have come to an agreement on the matter in recent months.
The display business unit of LG Group supplied a total of 50,000 LCD panels from December to January this year after providing around 6,000 units in June last year, according to a report by business news outlet Chosun Biz.
Some 70 percent of Samsung’s TVs utilize displays made by Chinese or Taiwanese firms, including Innolux, AUO, China Star and BOE. Some market watchers also said increasing adoption of LGD panels is aimed at maintaining the premium image of top-of-the-line TVs, as large as 60 to 70 inches.
By Kim Young-won (email@example.com)