Samsung and LG M&A Deal Stalled

As reported by the local S.korean media, Samsung was likely to make a merger and acquisition deal with LG to purchase QD-OLED panels this year. But according to local media, it could be in perils for now.

The recent fall in the price of LCD panels is caused by slow pace demand for laptop computers, monitors, and TVs.

This deal was likely because the price of LCD panels soared last year. Samsung has already been dependent on the Chinese for panels. Due to the recent announcement of withdrawal from the LCD business, is seeking out LG because of less investment in Q&C.

Samsung makes 30,000 panels a month, while LG Display can produce 170,000 at its plants in Paju, Gyeonggi, and Guangzhou, China. Samsung started last year in Q4 making Q-OLED panels and increased by around 80 percent.

However, Samsung Display declined to comment on the yield rate.

“If we are to use LG OLED panels in our products this year, the discussion would have to have been concluded by now,” “So the chances are slim that we will release TV sets with LG OLEDs.
-a spokesperson from Samsung Electronics.
“Still, all possibilities remain open for future orders, although nothing is decided,” he said.

“The main TV brand for Samsung Electronics is the Neo QLED, which has an LCD main panel.”
-Yi Choong-hoon, head of the display-focused market tracker UB Industry Research.

“Given that LCD panel prices are dramatically decreasing, Samsung Electronics might opt to focus on the Neo QLED models this year.”
-Yi said.

“At that time, Samsung Electronics may have been under great pressure to migrate to OLED TVs quickly. But when LCD panels are cheap, the manufacturer will be less incentivized to push through with the transition.”
-Yi said.