LG Display to supply OLED TV panels to Samsung Electronics

Industry

LG Display to supply OLED TV panels to Samsung Electronics

Published: 17 May. 2023, 10:53

LG Display's OLED TV panel [LG DISPLAY]

LG Display is trading strong in the Kospi bourse Wednesday morning following a report that the panel maker will supply OLED TV panels for Samsung Electronics.

LG Display share price was trading at 15,620 won as of 10:50 a.m. Wednesday, up 2.76 percent from the previous trading day, after reaching 16,100 won at 9:20 a.m.

Reuters reported on Tuesday that LG Display is set to supply large-sized OLED panels for TVs to Samsung Electronics starting as early as this quarter, citing unnamed sources.

LG Display did not confirm the report.

The deal is expected to be worth at least $1.5 billion, Reuters reported.

Samsung Electronics rolled out OLED TVs in the United States and European regions last year and recently began to sell them in Korea, a decade after the company introduced its last OLED TV models in the domestic market.

LG Display has been in the red for four consecutive quarters as of the January-March period due to slumping IT demand worldwide.

Analysts forecast the potential supply deal may bring LG Display back into the black.

“We see LG Display escaping from a two-year losing streak with a turn to black in 2024, driven by shipments of large-size OLED panels to Samsung Electronics in the second half of the year, raising production facilities to full capacity,” Kim Dong-won, a KB Securities analyst, said in a report Wednesday.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]