Samsung Electronics and Samsung Display have hit a roadblock in their negotiations over the price of quantum-dot (QD)-OLED panels that the latter originally planned to supply to the South Korean electronics giant for their TVs, TheElec has learned.
The negotiations, which started late last year, have recently hit a snag as Samsung Electronics had demanded that Samsung Display offers its QD-OLED panels at a level price to LG Display’s white (W)-OLED panels, sources said.
Samsung Electronics has even told Samsung Display that if these terms are not met, it could delay its launch of QD-OLED TVs, which is currently set for mid-2022.
Samsung Display had told Samsung Electronics that the terms are unacceptable, sources said.
If the pair fails to resolve the issue, it will likely be Sony that launches the first-ever QD-OLED TV this year. Samsung Display has already clinched a supply order to supply 55-inch QD-OLED panels to the Japanese giant.
The Visual Display (VD) Business, the TV business unit of Samsung Electronics, originally planned to launch around half a million units of QD-OLED TVs.
How much of a price cut VD business requested to Samsung Display remains unclear.
But Samsung Display is likely offering QD-OLED at a price tag around a hundred dollars higher than LG Display’s W-OLED, the sources said.
Samsung Display is also planning to supply 30-inch QD-OLED panels to Dell for monitors.
Samsung Display’s QD-OLED panel business is of keen interest to Lee Jae-yong, the vice chairman of Samsung Electronics and the leader of the entire Samsung business group.
Lee had visited Samsung Display’s plant in South Korea back in 2018 and had ordered the company to reevaluate entering the large OLED panel business.
Samsung Electronics and Samsung Display had halted their large OLED panel business five years prior due to yield rate issues. Unlike rival LG Electronics, which continued its OLED TV business, Samsung Electronics changed focus to QD and MiniLED TVs instead.
The high interest in QD-OLED TV by Lee means the VD Business and Samsung Display will be open to negotiations till the end, the sources said.
Meanwhile, Samsung Display currently runs one production line QD-OLED panels called Q1 at its Asan plant. The line uses Gen 8.5 (2200x2500mm) substrates with a capacity of 30,000 substrates per month.
