[THE INVESTOR] Samsung Electronics will produce TVs featuring LCD panels supplied by its crosstown rival LG Display from July, industry sources said on June 28.

Sources said LG Display will start producing the 40- and 60-inch panels for Samsung’s high-end TVs from as early as next month at its P7 and P8 plants in Paju, Gyeonggi Province.

“The two firms have negotiated contract conditions, including the production schedule, over the past six months and have recently come to an agreement,” an industry source told The Investor on condition of anonymity.

The source said about 700,000 to 1 million units of the LG panels are expected to be supplied to Samsung this year. Samsung, the world’s largest TV maker, used to secure 4-5 million LCD panels from Japanese display maker Sharp.

After Sharp abruptly broke its long-term partnership with Samsung in December last year, Samsung tapped LG for supplies of larger LCDs. Sharp, owned by Taiwan’s Foxconn, suspended supply to Samsung possibly to focus more on producing its own LCD TVs.

Samsung also plans to secure LCDs for its TV sets from Chinese and Taiwanese display makers, including BOE and Innolux, to fill up the deficit from Sharp in the coming months.

By Kim Young-won (wone0102@heraldcorp.com)