Tech News: Rumors suggest Samsung will use LG Panels to make OLED TVs next year.
According to a report by the Korean broadcaster MTN, identified by Sammobile, Samsung would start producing OLED TVs with sourced panels from competitor LG. The two companies have reportedly signed a conditional agreement under which Samsung will purchase up to 1 million OLED panels. from LG in the second half of 2021 and up to 4 million panels in 2022.
Samsung is known for its high-end QLED TV technology, but is one of the largest manufacturers of OLED screens for smartphones. Meanwhile, LG is betting on OLED for its more expensive TVs and is also supplying OLED panels to Sony and other manufacturers. If true, the news that Samsung could build at least some OLED TVs would represent a big shift in the industry.
The rumor makes sense given the recent changes in the flat screen TV industry. As Yonhap just reported, LG and Samsung are shifting their focus from LCD TV to more expensive models. LCD offerings are now defined by Chinese companies such as BOE, CSOT and HKC, which are currently the three largest manufacturers of LCD screens.
Therefore, LG Display plans to increase its profitable OLED panel production capacity “as part of its efforts to dominate the OLED market,” according to TrendForce. Of the 25 million LG Display panels shipped last year, 8 million were OLEDs. So it would make sense to increase production to meet Samsung’s orders.
Samsung, meanwhile, is focusing on its new hybrid QD-OLED technology, whose first TVs are expected to hit the market in the fourth quarter of 2021. The first TVs are expected to hit the market in the fourth quarter of 2021. However, there are reports of problems. with the production yield, so Samsung had to get OLED from LG.
Samsung and LG have already worked together in the past: Samsung has reportedly already discussed with LG to buy LCD screens. While a deal between the two makes sense, neither company has confirmed the rumor, so the reported deal may never materialize.