LG Display to supply TV panels to Samsung
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