Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen OC_Formula for the clue delivery! CTOnews.com, April 20 (Xinhua)-- according to the Korean Herald, Samsung and LG have resumed cooperation negotiations with the goal of signing an agreement by the first half of this year. If a deal is reached, Samsung is expected to start producing televisions using LG panels early next year.

Industry insiders said that as Samsung display's annual production of OLED panels is expected to be 1.5 million, it hopes to buy more panels from LG display companies. LG has a production capacity of 10 million OLED panels.

According to CTOnews.com 's historical data, the two sides held negotiations in 2021, but failed to reach an agreement due to differences in pricing and contract duration. Industry insiders predict that this time their alliance has a better chance of success because Samsung needs to expand its share of the OLED TV market, while LG shows that it needs to get rid of losses.

What is interesting about Tuyuan Pexels is that at the beginning of this year, some industry insiders revealed that Samsung will produce and supply OLED panels for LG Electronics's first OLED notebook computer, the Gram Style.

According to UBI Research, global panel shipments of OLED TVs will reach 9.1 million this year, jump to 11.6 million in 2025 and 14.1 million in 2027, an annual growth rate of 11.6 per cent. "it is highly likely that Samsung and LG will reach an agreement before the second half of this year," said UBI Research's CEO.

Omdia believes that the OLED panel market has not yet fully recovered, and OLED TV manufacturers are also facing the challenge of weak market demand, and it is expected that the average capacity utilization of OLED producers in the first half of 2023 will be less than 60%.

Orders from LGE, Sony, Panasonic, TPV, Hisense and Samsung are insufficient to support capacity utilization in the 8.5G OLED plant, while some flexible OLED 6th generation factories in Chinese mainland are also facing unstable orders and low capacity utilization.

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