Apple Considering Investment in LG OLED Display Plant
Apple is reportedly in talks with LG Display to invest about $1.75-2.62 billion USD into the Korean display maker’s new OLED production lines exclusively dedicated to Apple orders, reads a new report from The Investor.
According to the report, it seems that the iPhone-maker has asked LG to step in and come to the rescue as reports this week claim that Apple has agreed to invest a significant amount of money in LG’s OLED production lines in return for exclusive production in the build-up to September.
Currently, Samsung Display dominates more than 95 per cent of the smartphone OLED market, supplying OLED screens to a limited number of big clients, including Samsung Electronics and Apple. Amid the dominant market share of the No. 1 maker, other display makers such as LG Display and China’s BOE are making all-out efforts to beef up OLED production.
“Samsung Display is the only display maker that meets Apple’s strict quality criteria for now,” said an industry source on condition of anonymity. “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.”
Apple’s fresh investment is expected to be poured into LG Display’s new plant, called E6, which has been widely rumored to be dedicated to iPhone orders. About 3.5 trillion won is needed for an OLED production line with a monthly capacity of 30,000 units of the sixth-generation OLED mother glass.”
One source told the The Investor that “The funding form Apple is also expected to help LG Display reduce risks from the lower margin,” adding that “Apple is known for slashing supply prices for parts makers.”