Resurfacing Samsung-LG OLED Alliance Speculation

Vice Chairman Han Jong-hee "Possibilities Always Open"
Expanding OLED TV Share... "Dialogue Possibilities Remain"

Samsung Electronics QD-OLED TV. [Photo by Samsung Electronics]

[Asia Economy Reporter Han Yeju] The alliance rumors between Samsung Electronics and LG Display regarding OLED (Organic Light Emitting Diode) TVs are resurfacing. As the share of OLED in the global TV market expands and Samsung Electronics entered the market this year with Quantum Dot (QD)-OLED TVs, there is analysis that Samsung may aggressively strengthen its market dominance.

According to industry sources on the 11th, recently, Han Jong-hee, Vice Chairman of Samsung Electronics, mentioned the alliance rumors with LG Display at IFA 2022, Europe's largest home appliance exhibition held in Berlin, Germany.

Vice Chairman Han said about the possibility of OLED cooperation with LG Display, "The possibility is always open," adding, "Although it is currently in a lull due to economic conditions, war, and logistics issues, we are looking at it with an open mind."

So far, Samsung Electronics has sold LCD (Liquid Crystal Display) TVs as its main product among all large TVs. However, as OLED TVs have become the trend, it has been continuously considering ways to respond to that demand. The problem is that it is difficult to secure enough QD-OLED panel supply through its subsidiary Samsung Display. Therefore, there has been speculation that Samsung Electronics has been negotiating with LG Display, which holds the number one global market share, since early this year to meet its target shipment volume.

Later, LG Electronics also welcomed the move, saying, "The entry of a competitor into the OLED TV market will help activate the ecosystem," seemingly formalizing the alliance. However, it is reported that the two companies failed to narrow their differences due to slight discrepancies in panel supply prices and quantities. Samsung Electronics proposed OLED panel prices lower than those LG Display supplies to LG Electronics, but LG Display reportedly expressed reluctance.

There is also analysis that due to the worsening TV market conditions and the decline in LCD panel prices, Samsung Electronics no longer needs to put significant effort into new OLED products.

However, even if TV shipments decrease, the outlook for the OLED TV market appears mixed. Market research firm Omdia predicts this year's TV shipments to be the lowest in 12 years, while expecting the OLED TV market to grow by 23% compared to the previous year.

Accordingly, the industry predicts that Samsung Electronics may resume talks with LG Display. Since Samsung Electronics entered the OLED TV market for the first time in about nine years by launching QD-OLED TVs this year, it is analyzed that it could fill the shortage of supply through LG Display to expand the market.

An industry official said, "With the TV market outlook not favorable this year, Samsung Electronics has gained some time to consider," adding, "However, as the share of OLED in the global TV market grows, Samsung Electronics also needs to actively respond to the market, so it may attempt to resume talks."

This content was produced with the assistance of AI translation services.