LG Dis­play to sup­ply TV pan­els to Sam­sung

The Star Early Edition - - INTERNATIONAL - Jun­gah Lee and Min Jeong Lee

LG DIS­PLAY had scored a deal to sup­ply tele­vi­sion dis­plays to ri­val Sam­sung Elec­tron­ics from as soon as this year, peo­ple with knowl­edge of the mat­ter said.

LG Dis­play, a ma­jor sup­plier of pan­els to Ap­ple, would re­place a ven­ture be­tween Sharp and Fox­conn Tech­nol­ogy Group as a sup­plier to the world’s big­gest TV maker, said the peo­ple, who asked not to be iden­ti­fied be­cause de­tails of the agree­ment had not been re­leased. LG Dis­play and Sam­sung re­it­er­ated com­ments from ear­lier this month that they were in talks on LCD sup­ply without elab­o­rat­ing.

A sup­ply agree­ment be­tween the two would be a first for the long-time South Korean ri­vals. Sakai Dis­play Prod­ucts, con­trolled by Sharp and Fox­conn, has cut back sup­ply of LCD screens to other TV mak­ers, a move that may fos­ter a panel sup­ply short­age and fur­ther push up dis­play prices.

Sup­ply might stay tight well into next year, ben­e­fit­ing LG Dis­play and other panel mak­ers, said Chung Won-suk, an an­a­lyst at HI In­vest­ment & Se­cu­ri­ties.

“The abrupt sup­ply halt by Sharp will have a domino ef­fect on other TV mak­ers,” he said, warn­ing that LG may not be able to boost out­put quickly enough to off­set Sharp’s ab­sence. “That will cause the sup­ply short­age to per­sist through­out the year and help sus­tain the price rally at least un­til the first quar­ter.” – Bloomberg

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