Samsung Display CEO Lee Chung: "U.S. Tariffs Creating Downward Price Pressure"

"Continued Efforts to Secure Orders from Big Tech"

Lee Chung, CEO of Samsung Display, stated, "If product prices of set makers rise due to U.S. item tariffs, there could be downward price pressure on component suppliers such as display companies. We are closely monitoring the situation."

On August 7, at the opening of the 'K-Display 2025' exhibition held at COEX in Gangnam-gu, Seoul, Lee met with reporters and was asked about the impact of U.S. President Donald Trump's remarks regarding a '100% semiconductor tariff' on the display industry. He responded, "Because our clients' products contain a large number of semiconductors, their prices will inevitably rise," explaining his concerns.

Lee Chung, Chairman of the Korea Display Industry Association and CEO of Samsung Display, delivered a welcoming speech at the 'K-Display 2025' exhibition held on the 7th at COEX in Gangnam-gu, Seoul. Photo by Yonhap News

Regarding direct investment in the United States, Lee drew a clear line. He said, "We have not considered it yet," and added, "It will be important to discuss and prepare well with our clients on issues such as downward price pressure."

Samsung Display currently operates production bases domestically (Cheonan, Asan) and overseas (China, Vietnam, India). If U.S. item tariffs become a reality, the direct impact is expected to be felt by set makers. However, Samsung Display is also expected to face indirect effects such as pressure to lower unit prices. Rather than investing in the United States, Samsung Display plans to optimize production by utilizing existing supply chains, while accelerating efforts to strengthen price competitiveness through AI-based manufacturing innovation.

Lee expressed concern about the outlook for demand in the second half of the year due to the impact of tariffs. He said, "Traditionally, the display industry performs well in the second half of the year due to new product launches by our clients, but this year I am somewhat worried." He added, "There is a high possibility that product prices will rise due to tariffs, and conservative business operations are expected due to slowing consumption."

When asked about the outlook for the foldable panel market, Lee was confident, saying, "We are already leading the foldable market." He continued, "The latest Samsung Electronics Galaxy foldable phones are receiving positive feedback," and explained, "I expect our clients to ship more foldable phones next year or thereafter."

Regarding plans to win orders from U.S. big tech companies, he added, "We are always determined and ready to take on new challenges in new places." Samsung Display supplied OLED panels for both the cover and main displays of the Galaxy Z Fold7 and Flip7. There is also speculation that Samsung Display could supply panels for Apple's next foldable phone.

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