Sources have told the Korea Times that BOE has proposed the establishment of an OLED joint venture with LG Display and Samsung Display. One source said that “an affiliate” of BOE had reached out to “several Korean parts suppliers” in June, to propose a joint venture being set up in China.
To tempt its proposed partners, BOE is said to have guaranteed sales of their products in China. An executive at one of LG Display’s Korean partners told the Times, “We are seriously considering accepting BOE’s business offer”, based on the guarantee. The source added that BOE also plans to approach Japanese OLED suppliers, if the talks in Korea are unsuccessful.
Industry officials warned that such a joint venture could negatively impact Korea’s leading position in the OLED supply chain. The deal could lead to BOE receiving more support from the Chinese government, and may also result in technology leakage into China.
A spokesperson at LGD said that, although it is considering building an additional OLED line in Korea, it has no plans to tie up with BOE. Samsung Display had no comment.