Apple & LG Display in Investment/Supply Deal

The Korea Herald reports that LG Display is in discussion (the report says it is ‘tentatively agreed’) with Apple about an investment that could be up to two or three trillion won ($1.75 billion to $2.62 billion). The news comes after previous reports that LG Display was in discussion with Google about an investment (Google Offers Cash for OLEDs),

As we reported from the SID Business Conference, one of the limits on the development of new OLED fabs is the availability of the machinery needed from Canon Tokki, but the Herald reports that LG has been able to order two systems, which could be installed in December this year and February 2018, which would allow its production capacity to double.

Analyst Comment

Apple has lots of cash outside the US that is not doing a lot, so this kind of deal would make sense for both sides and this kind of deal has been seen before, so we wouldn’t be at all surprised by the news. LG Display still needs to develop and improve its yield for flexible OLEDs. (BR)