Although they are competitors in the global tech market, competition is not preventing LG and Samsung from doing business together as evident in yesterday’s revelation of a deal negotiation between both parties on the supply of 700,000 liquid crystal display (LCD) panel for televisions by LG Display Co. to Samsung Electronics Co. this year.
This development was revealed by industry tracker IHS Markit on Sunday. This is the first such deal between the two South Korean firms, which are competing in the global tech industry.
According to reports, Samsung earlier sought to receive panels from Sharp Corp., but the Japanese player earlier announced it would end the supply after being purchased by Taiwanese Hon Hai Precision. Industry watchers said the decision was intended to promote sales of its own TVs instead of lending support to Samsung.
In 2016, Sharp is estimated to have supplied 5 million units of panels to the South Korean tech manufacturer, which takes up 10 percent of Samsung’s annual demand for LCD panels. LG Display said last month that the company is under discussion with Samsung on the LCD panels, with the supply anticipated to begin in the second half of 2017.
An official from Samsung, meanwhile, said the two companies have not yet inked an official agreement.
