South Korean manufacturers LG This Samsung has entered into a historic component supply agreement, both in terms of the amount of materials involved and the collaboration between two brands that often compete in various technology industry markets.

According to the news agency Reuters, LG display will sell Samsung OLED screens for use in Smart TVs. The agreement, which has been treated as a rumor in recent weeks, comes into effect from this quarter and should mainly cover panels for top-of-the-range models.

In general they will 2 million units sold in 2024while the value reaches 5 million screens per year by 2026. Three different sources confirmed to Reuters the success of the talks, but the two companies made no announcements about the matter.

everyone wins

The supply chain partnership between LG and Samsung’s display divisions is considered historic as it was an important truce in the rivalry. However, this move makes sense from a marketing standpoint.

According to the initial report, the agreement will be beneficial to both parties. LG Display had a surplus of material and the division need new partners to get out of the red – The OLED market accounts for up to 30% of the division’s revenue and it was the drop in orders that slowed it down.

Samsung already having problems with the supply of Samsung Display screens, which will not be able to meet demand in order to maintain the brand’s growing presence in the OLED market. It entered this segment last year and the line is already available in Brazil.

In addition, the brand does not yet have 83-inch panel production technology that the competitor is already offering, which means it can now expand its TV family to new sizes. Samsung is currently focusing on smaller OLED displays, including Apple as one of its major customers.

At the moment, LG is the world leader in the OLED Smart TV market.followed by Sony and Samsung in third place.

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Source: Reuters.

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