[ET NEWS] LG Display will start supplying mammoth 65- and 75-inch LCD panels to Samsung Electronics this month -- the first-ever panel sharing between the crosstown tech rivals following an abrupt supply cut by Japan’s Sharp last year.

It was widely speculated that LG would supply mostly 40-inch panels that Sharp used to supply for Samsung. But industry sources said Samsung has decided to purchase larger panels as it is strengthening its premium ultra-large TV lineup. 

Samsung's QLED TV

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“We have decided to supply 65- and 75-inch panels from later this month. Talks are continuing on the supply volume,” an LG Display official told ET News on condition of anonymity. “We are discussing ways to secure stable supplies as part of our long-term partnership.”

The panel sharing between Samsung and LG comes after several failed attempts over the past decade. The government also sometimes intervened in their talks to encourage partnership between the two Korean tech giants but they never reached an agreement due to differences in manufacturing technologies and supply volumes.

Sources say the LG panels are likely to be featured in Samsung’s premium QLED TV next year.

This year, sales of 55- and 65-inch TVs soared globally. Industry watchers predict the market for 65-inch plus TVs would become bigger next year.

Samsung, the world’s largest TV maker that is still focusing on LCD-based premium TVs, is expected to pour resources into 75-inch and above TVs in order to secure an edge over OLED TVs with smaller screens -- mostly 55- and 65-inch panels.

Disputes are still continuing over the superiority between upgraded LCD and OLED panels.

Thus far, Samsung has been securing 75-inch plus panels from its display-making unit Samsung Display, while its Chinese suppliers focus on smaller 50-inch panels.

“Because Samsung and LG never worked together, their suppliers also had to work with one of the two only,” another source said. “Their tie-up could generate more diverse business opportunities across the industry.”

By Bae Ok-jin (withok@etnews.com) (jylee@heraldcorp.com)
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