LG Display to supply LCD panels for Samsung TVs?

And Hell remains unfrozen

by Mark Hodgkinson Jan 25, 2017 at 4:14 PM

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    LG Display to supply LCD panels for Samsung TVs?
    It is being reported that arch-rivals LG and Samsung have come to an agreement that will see LG Display supply Samsung with LCD panels to be deployed in some of Samsung’s upcoming TVs.
    If the deal was to come to fruition, it would be surprising on a number of levels and not just because there exists such rivalry between the two Korean companies. Samsung has long been a proponent of VA (Vertical Alignment) type panels which offer better contrast than the IPS (In-plane Switching) panels LG Displays’ LCD offerings are based on, which will have a direct effect on picture quality.

    According to Bloomberg, supply could even begin this year which begs the question – in which Samsung TVs they could be used?Clearly they’re not going to be in Samsung’s flagship QLED range but how low down the ranks will they be used? Perhaps they will solely be used in Samsung’s entry-level Full HD range but only time will tell.

    LG Display will replace a venture between Sharp and Foxconn Technology Group as a supplier to the world’s biggest TV maker, according to Bloomberg’s sources, who are naturally not going to reveal their identities. LG Display and Samsung have reiterated comments made earlier in 2017 that they are ‘in talks’ on LCD supply.

    Sharp has recently cut down on its LCD panel display supply commitments to all other manufacturers which looks to have benefitted LG here. According to Chung Won-suk, an analyst at HI Investment & Securities Co. in Seoul, panel supply may remain tight well into 2018. Sakai, the company behind Sharp, is thought to supply as many as four million panels per annum to Samsung.

    The abrupt supply halt by Sharp will have a domino effect on other TV makers from Samsung to Sony,” he said. But LG may not be able to boost production quickly enough to offset Sharp’s absence. “That will cause the supply shortage to persist throughout the year and help sustain the price rally at least until the first quarter.”

    What next, LG Display supplying Samsung OLED panels? Now, surely, that’s something that will never happen?

    Source: Bloomberg

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