According to the Korea Herald, Samsung and LG have resumed cooperation talks and aim to sign a deal by the first half of this year. If the agreement is reached, Samsung is expected to start producing TVS using LG panels early next year.

As Samsung Display is expected to produce 1.5 million OLED panels annually, it wants to buy more panels from LG Display, which has a production capacity of 10 million OLED panels, industry sources said.

According to historical data, the two sides negotiated in 2021, but failed to reach an agreement due to differences in pricing and contract period. Industry insiders predict their alliance has a better chance of success this time around, as Samsung needs to expand its share of the OLED TV market and LG Display needs to pull itself out of the red.

Interestingly, earlier this year, an industry source said Samsung Display would produce and supply OLED panels for LG Electronics' first OLED laptop, the Gram Style.

According to UBI Research, global panel shipments of OLED TVS will reach 9.1 million units this year, jumping to 11.6 million in 2025 and 14.1 million in 2027, representing an annual growth rate of 11.6 percent. "It is highly likely that Samsung and LG will reach an agreement before the second half of this year," said the CEO of UBI Research.

Omdia believes the OLED panel market will not fully recover yet, and OLED TV makers are also facing the challenge of weak market demand. It expects OLED makers to have an average capacity utilization rate of less than 60 percent in the first half of 2023.

Orders from LGE, Sony, Panasonic, TPV, Hisense and Samsung are not enough to support the capacity utilization of the 8.5-generation OLED plants, while some flexible OLED 6-generation plants in the Chinese mainland are also facing uncertain orders and low capacity utilization.

In recent days, the Nikkei business daily reported that South Korea's Samsung Electronics and LG Display are spending billions of dollars on new production capacity for mid-sized organic light-emitting diode (OLED) panels to secure business for Apple's ipads and MacBooks and keep out Chinese rivals.

Samsung Display, a unit of Samsung Electronics, will invest 4.1 trillion won (3.05 billion U.S. dollars) to build an OLED production line in Tangjeong, South Korea. The OLED panel, which has a size of 2620x2,200 mm, will be mass-produced in 2026.

Samsung, which supplies OLED panels not only to its own smartphones but also to customers such as Apple, accounts for about 70 percent of the smartphone OLED panel market, the Nikkei report said.

LG Display will spend 3.3 trillion won to build a production line for medium-size OLED panels at its Paju plant, which will use sixth-generation technology and will not be able to match Samsung's technological advances.

Samsung and LG Display are investing more in mid-sized OLED panels as laptops and tablets shift from LCD screens to OLED screens. Apple, a customer of both companies, is said to be using OLED panels for the 2024 iPad. The MacBook is also expected to have an OLED screen in the future.

Gestant Display Technology Co.,Ltd. could provide a series of LCD and OLED products, such as AMOLED Screen, PMOLED Screen, Round Display Screen, Flexible Display Screen, TFT LCD, Mono-LCD and Bar Display Screen. Customize PCBA/LCD/OLED/FPC/Backlight/Coverlens/TP solutions.

Gestant Display Technology Co.,LTD was founded in 2012 in Shenzhen China. Even, the founder of the company, has more than 15 years of rich experience in LCD display industry. He has been engaging in the basic research of LCD display technology in Japan since his graduate school and has been working in the flat panel display industry after graduation.

Proficient in the manufacturing process and technology development of LCD / OLED / polarizer, Even was also one of the members of China liquid crystal Association who has a senior industry background and supply chain resources. In the past three years, he assisted his shareholders in building factories, purchasing equipment，establishing production lines, and successfully obtaining ISO9001 and ISO14001 system certificates.

He has established good business relations with major panel manufacturers in China (BOE /Tianma / IVO /EDO / Visionox), and the glass supply is stable and sufficient.

Gestant Display's products are widely used in Smart wear，Smart home，Outdoor photography，IP phones, Medical care, Industrial control equipment, Automotive and Vehicle displays, Instrumentation, and other Information terminal applications which could offer long-term after-sale services(such as 2 years quality warranty, long-term supply) .