LG And Samsung Are Getting Serious About Their OLED Panel Deal Again

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It's been a roller coaster for Korean tech giants LG and Samsung. In 2021, it was reported that they were close to completing a major deal for an OLED panel, but in 2022 talks appear to have stalled. Now, in 2023, talks could resume.

Elec reports that Samsung Electronics and LG Display have resumed talks on a deal that would provide LG with more than 200,000 white OLED (WOLED) panels for a new line of Samsung-branded TVs due out in 2024. Perhaps just the beginning. of a long association.

When news of the talks first broke a few years ago, it was reported that the talks had started at the behest of the South Korean government in response to the international situation, with LCD screen companies and China's BOE increasing the LCD costs. A panel that threatens Samsung's television dominance. At the time, Samsung was using LCD technology for its TVs, competing with LG's increasing focus on OLED.

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Because of these market changes, and because OLED typically accounts for a larger share of consumer display spending than LCD, Samsung needs to diversify into OLED to ensure its future success, at least until micro-LED becomes an alternative. affordable to OLED. .

LCD panels suffer from several fundamental weaknesses in image quality compared to OLED, e.g. B. that not all pixels emit individually, making it difficult to achieve high contrast ratios or deep black levels in the pixel layer. Samsung and others have introduced various innovations in recent years to address these weaknesses, but OLED has been winning head-to-head among critics.

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However, OLED does have some drawbacks. OLED panels are difficult to make brighter than LCD panels and this is key to emphasizing HDR and viewing in a bright room. And of course, OLED panels have a history of collapse. While Samsung has tried to correct the main weaknesses of LCD image quality, LG has come up with innovative solutions that reduce the risk of OLED burn-in. For example, LG TVs can automatically detect the ubiquitous Grid logo and darken or even shift pixels in areas of the screen in a way that's so subtle you won't notice it, but prevents pixels from flickering quickly.

However, these solutions are not absolute. If Micro LED delivers what it promises, it offers the best of both worlds: high brightness potential and individual pixels that emit absolute black, with no burn-in. However, companies and researchers working on small LEDs have yet to make the technology affordable enough for the mass market.

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At least for now, Samsung needs to ship more OLED TVs to keep up. This agreement will unite LG and Samsung to allow Samsung to ship new types of WOLED TVs in the coming years.

Samsung is currently integrating QD OLED displays into its high-end TVs. However, WOLED panels could allow the company to replace LCD panels in the mid-range market, significantly reducing its reliance on Chinese companies in the LCD supply chain and giving the company more leverage in its negotiations with those companies. .

Meanwhile, LG recently suffered significant operating losses. Under the terms of the contract, LG can help close this gap.

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