Samsung buys 5 million panels from LG for its own OLED televisions

Samsung wants to produce its own OLED televisions with panels from LG Display
Samsung wants to produce its own OLED televisions with panels from LG Display (symbol image)

Samsung Electronics wants to purchase around 5 million OLED panels from LG Display in 2021/22 and use them for the production of their own OLED televisions!

No late April joke! According to reports from the Korean news portal, board members of Samsung Electronics and LG Display have met to negotiate a cooperation deal. The cooperation has not yet been finalized, but only a few details of the agreement should still be clarified. The subject of the cooperation is the acquisition of around 5 million OLED panels by Samsung Electronics from LG Display. Can the Korean electronics heavyweights put aside their years of rivalry and do business together?

5 million OLED panels for Samsung

It almost sounds too good to be true. In the second half of 2021, Samsung Electronics, responsible for the TV division at Samsung (QLED, NEO QLED, etc.), would like to acquire 1 million OLED panels. In the following year 2022, another 4 million units are to be delivered to Samsung’s production facilities. The volume of the cooperation is enormous when you consider that LG Display will only produce around 8 million OLED panels this year.

But how did this change of heart suddenly come about at Samsung Electronics? With QD-OLED (Quantum Dot OLED), developed by Samsung Display, doesn’t the company have its own promising contender in the high-end segment? And what about the further development of the NEO QLED TVs (with mini-LED backlight) and micro-LED TVs?

Rising LCD prices are to blame

The reason for the 180-degree turnaround is said to be the rising prices for LCD panels, caused by Chinese manufacturers who now make up a large part of international LCD production. The price for a 55-inch LCD panel was around $ 200 in the first quarter of 2021, a price increase of around 74 percent. The price increase was mainly caused by the corona crisis, in which the demand for TV sets rose sharply. And in order to maintain the relevance and profitability of the TV segment, Samsung was “forced” to take this step.

As a “side cooperation”, the development department of Samsung Display is said to have joined forces with colleagues from LG Display in order to get the high failures in the production of QD OLED displays under control. This is possibly also the reason why Samsung Electronics has so far refrained from its own Quantum Dot OLED panels and is daring an “intermediate step” with mini-LEDs this year.

The official statement from Samsung goes as follows: “The official position is that it is not true because it has not been confirmed. However, it is our basic guideline to screen competitors for securing production parts. “

Samsung OLED TV at CES 2022?

Means that Samsung could present its own OLED TV at CES 2022 and place it prominently on the global market with a total of 5 million units. With this step, the OLED / QLED bashing of the two competitors should also come to an end. And when Samsung Electronics is on the move, how about integrating the industry standard Dolby Vision HDR into your own TV segment? What do you think of the report? How realistic is a Samsung OLED TV with a panel from LG Display?


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