Apple wants to invest in LG’s OLED production factory

- Adrian Ungureanu

We don’t know if Apple isn’t happy to buy OLED panels from the Samsung, the No. 1 rival group on the smartphone market, but it looks like the American tech giant wants LG Display to become a panel supplier for its iPhone again.

So, Apple is reportedly in talks with LG Display to invest about 2 to 3 trillion won (US$1.75-2.62 billion) into the Korean display maker’s new OLED production lines exclusively dedicated to Apple orders.

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.

“The funding form Apple is also expected to help LG Display reduce risks from the lower margin,” said another source, adding Apple is known for slashing supply prices for parts makers.

Previous rumors suggested that LG might become Apple’s OLED supplier starting with 2019, which is the year when its contract with Samsung expires. So it looks like Apple doesn’t want to extend their contract with Samsung.

But Apple is not the only one who wants to invest in LG’s OLED panels production units, as in April Google offered an 880 million dollars investment deal. LG confirmed to proposition, but no decisions were made after that. Maybe LG waited for Apple to make its move.