LG Display And Samsung Receive LCD Panel Supply Agreement: Ending Hostility

- Mar 20, 2018-

                                 According to reports on the 23rd, informed sources said that LG Display has reached an agreement with Samsung Electronics to supply TV LCD panels to Samsung as soon as possible later this year.
The person familiar with the matter said that LG Display will replace Foxconn's joint venture with Sharp and become Samsung's TV LCD panel supplier. Currently, LG Display is Apple's main supplier of LCD panels.
In the middle of last month, there were reports that Sharp and Foxconn had made a decision to stop supplying TV LCD panels to Samsung through its joint venture. The reason is that under the control of Foxconn, Sharp plans to double global television sales to more than 10 million units in the fiscal year that began in April 2018.
                                Earlier this month, it was reported that Samsung is negotiating with LG Display to discuss the supply of TV LCD panels. Subsequently, Kim Hyun-suk, Samsung TV's head of business, also confirmed that the two companies are conducting serious and serious negotiations.
                                LG Display doubles operating profit in the fourth quarter: LCD panel price rise is the main reason
                               This time, the cooperation between LG Display and Samsung in the LCD panel field is the first time. For a long time, the two companies have remained in a state of competition and never used each other's LCD panels.

                               The person familiar with the matter said that the joint venture between Foxconn and Sharp currently supplies up to 4 million LCD panels to Samsung every year, and also supplies products to Chinese manufacturers. Informed sources also said that LG Display will supply up to 3 million LCD panels for Samsung this year.
                              At the same time, Samsung's Samsung Display has cut its LCD panel production and switched to next-generation panels (OLED panels). It is said that Samsung has already begun contact with Apple Inc. and plans to supply OLED panels for the iPhone.
                             As Sharp stopped supplying LCD panels, Samsung has applied to the International Chamber of Commerce (ICC) for arbitration, requesting that the two other panel makers in the summer pay compensation of US$492 million to compensate for the loss of LCD panel supply.