Hi-Tech

Apple deciding whether to invest in LG's OLED production?

Apple deciding whether to invest in LG's OLED production?

The deal is likely to be a double-win for Apple. Apple is expected to make its investment in LG's new factory, which will be called E6.

Samsung is planning to come up with the world's largest OLED plan in South Korea.

According to news reports on June 3, the two firms have tentatively agreed on the investment plans, even though details, including investment timing and size, have not yet been finalized.

Similar reports emerged a few months ago, saying that Google would be ready to commit as much as one trillion won to make sure its future Pixel phones will not run into any OLED screen supply issues.

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Samsung Display is said to own 95 percent market share in the mobile OLED display field. LG will reportedly guarantee that all of the panels that roll off those specific lines will be sent to Apple. Companies including LG Display and China-based smartphone display makers are looking to expand OLED manufacturing operations. But Apple will need more OLED supply in the coming years. "LG Display is said to be meeting about 70 percent level of the requirements, while Chinese display makers are still struggling to catch up with that of LG".

The iPhone 8 is expected to be the first iPhone featuring an OLED display.

Apple now has to rely on Samsung, and with LG Display dropping into the mix, the tech giant will have greater say when negotiating component prices for future iPhones.

LG Display's OLED supply for iPhone seemed to be being delayed as it failed to purchase Canon Tokki's vacuum machine, the most advanced OLED production equipment whose supply is extremely limited. Last week, the company said it would soon build the world's largest production plant for OLED panels, in a move to further solidify its position.

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