- Mass production of OLED displays is expected to start in 2024.
- Samsung is seeking to gain market share in OLED displays after closing the LCD panel business.
- Reports data from Omdia suggest good profits in the Automotive business.
It hasn’t been long ago when Samsung chief & vice president Lee Jae Yong returned from his trip to Europe, where he met several people from different companies seeking m&A deals, where Samsung established a partnership with BMW to open a plant for supplying EV batteries.
Recently, on 24, Samsung has committed to supply OLED displays to BMW for their high-end series, especially sedans and the AUDI.BMW is a well-known German multinational manufacturer of luxury vehicles and motorcycles headquartered in Munich, Bavaria, Germany.
This is planned for mass production of OLED displays starting from 2024, and the partnership is expected to continue for 6 to 7 years after the mass production of 4 million BMW is complete from the Giheung plant.
Tier1 companies will be responsible for providing a supply network. Tier1 or one is the solution provider for supply networks, and these are generally the largest or the most technically-capable companies in the supply chain. They have the skills and resources to supply the critical components that OEMs need and have established processes for managing suppliers in the tiers below them.
Samsung also retired from the LCD panel business this month, where 300 employees were transferred to the semiconductor business, QD (Quantum Dot) OLED TV division, and small to moderate-sized OLED line, after transporting its last major fabrication glass into its L8-2 line in its Asan campus in South Chungcheong Province earlier this month.
Recently, Samsung also started a joint venture with Stellantis and struck a deal with TESLA for EV camera modules. It has also been doing R&D on EVs when it recently studied a TESLA Y model at their Samsung Seocho Building in southern Seoul. Last year, it also supplied OLEDs to their home player in automobiles, Hyundai Motor’s Ioniq 5. This is why Samsung is trying to expand & seek profits in future techs, such as OLEDs in the auto industry.
It is anticipated that Samsung is in its concluding phase of supplying OLED displays. Samsung has been heavily focusing on the European markets ever since the trip of vice president Lee Jae Yong to Europe, targeting to be the primary OEM supplier as it has come late in the game after the archrival in business LG, from their home turf, which has a whopping market share of 90% in this game.
The OLED display market is expected to grow more than 1000%, from KRW 56 billion in 2020 to KRW 680 billion by 2025. Although an official at Samsung Display declined to comment, saying, “We cannot confirm the details.”
However, the market for OLED displays shows otherwise because of continuous demand and the tech moving forward. This deal is expected to be almost complete, and Samsung will continue to seek more opportunities in the future.
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