Previous reports have made it clear that LG Display is looking to set up OLED factories to cater to the demand from various smartphone OEMs. The company will reportedly be investing up to $13.5 billion to set up its OLED factory. However, that investment alone would not be enough and analysts predicted that the company would require financial support from an external party in setting up the factory.
Now, the Korea Economic Daily says that Apple has reportedly decided to invest $2.67 billion (3 trillion won) in LG’s OLED plant. Apple will be making an advance payment to LG and in return, it will be securing 45,000 units of LG’s 6.5 generation OLED panel on a monthly basis from 2019.
LG Display has been a longstanding supplier of LCD panels to Apple. The Korean company is a leader in OLED panels for TVs but has struggled to even setup a factory for producing OLED panels for smartphones.
Apple still has not made the plans official due to its close proximity with Samsung Display from whom it is sourcing OLED panels for the iPhone 8 and future iPhones. Nonetheless, the move will help Apple in diversifying its OLED supply chain which is currently dominated by Samsung.
In addition to Apple, Google is also expected to invest around 1 trillion won in LG’s Display business to help setup its OLED factory. Similar to Apple, this move will allow the company to secure monthly OLED panels from the company for its smartphones.
[Via The Investor]