SEOUL (Reuters) - South Korea’s LG Display Co Ltd said it was in talks with Samsung Electronics Co Ltd about a supply agreement for television display panels.
“If we do supply (Samsung) it likely won’t be a one-time thing,” LG Display Chief Executive Han Sang-beom told reporters on Wednesday on the sidelines of the CES trade show in Las Vegas. Specifics of the deal have not been decided, he added.
A Samsung Electronics spokesman confirmed the news on Thursday, a day after local media reported the two sides were in talks about a potential liquid crystal display panel supply deal, citing the head of Samsung’s TV business.
This news comes on the heels of a report by Japan’s Nikkei newspaper that a joint venture company between Taiwan’s Hon Hai Precision Industry Co Ltd and Sharp Corp will halt the supply of LCD panels to Samsung Electronics sometime in 2017 as Hon Hai helps boost Sharp’s TV business.
Samsung Electronics, the world’s top TV maker, has avoided buying components from LG Group firms as it competes with LG Electronics Inc - LG Display’s top shareholder - in various markets including smartphones and televisions.
But analysts say Samsung Electronics may lack viable alternatives other than LG Display given its display-making unit - Samsung Display - is cutting LCD production to focus on making more organic light-emitting diode screens for smartphones.
Neither LG Display nor Samsung commented on specifics, including the potential size of a supply deal.
Reporting by Se Young Lee; Editing by Himani Sarkar