Good News for LG Display
It has been found that Google is intending to invest 1 trillion won (US$900 million) in facilities of LG Display in fierce completion to secure organic light emitting diodes (OLEDs) in the smartphone industry.
The intension is to secure stable small- to medium-sized flexible OLEDs for the Pixel Phone, a strategic smartphone of Google with the investment as security. Currently, small and medium-sized flexible OLEDs are virtually monopolized by Samsung Display, so smartphone makers are making efforts to diversify OLED supply lines.
According to industry sources on April 10, it is said that Google expressed its will to provide LG Display with at least one trillion won in investment to build an OLED production line. LG Display is currently preparing 6th-generation flexible OLED production lines at its Gumi and Paju factories in Korea. At the Gumi plant, flexible OLEDs will be mass-produced beginning in the second half of this year.
Google reportedly made the proposal to put flexible OLEDs produced by LG Display in its next-generation smartphone Pixel Phone. One trillion won can go into the construction of one line that can produce 6th-generation small and medium-sized flexible OLEDs.
Once signed, the deal will empower Google to secure flexible OLEDs which Google has relied on Samsung Display so far. Samsung Display is not able to meet global demand because it supplies panels not only to Samsung but to Apple and Chinese makers. Analysis says that Google's proposal is not a simple panel purchase, but the formation of a strategic relationship with LG Display through the facility investment proposal.
Actually, Google had some trouble supplying OLEDs for the Pixel Phones although the new smartphone was well received in the market after its launch last year. On LG Display’s part, its partnership with Google will save LG Display some of its huge burden for investment in OLEDs.