'Chipflation' Signals Trouble for Display Industry... Samsung Display and LG Display Vow Direct Response with Technology and Investment

Soaring Chip Prices and Declining Front-End OLED Shipments
Samsung Display: "Chungcheong Investment Plan Will Be Implemented Without Delay"

Leaders of the Korean display industry have expressed their determination to overcome the difficulties of the second half of the year—including rising semiconductor prices and slowing IT demand—by leveraging differentiated technology advantages and active investments.

Lee Chung, President and CEO of Samsung Display and Chairman of the Korea Display Association, told reporters at the '2026 Korea Display Industry Exhibition' held at COEX in Gangnam-gu, Seoul on the 22nd, "This year, we are facing severe challenges in the industry due to 'chipflation' (the burden of increased costs from rising semiconductor prices), and our clients are also struggling. Honestly, I even wish semiconductor companies would lower their prices."

Lee Chung, CEO of Samsung Display and Chairman of the Korea Display Association, is answering questions from the press at the '2026 Korea Display Industry Exhibition' held at COEX, Gangnam-gu, Seoul on the 22nd. Photo by Jinyoung Kim

He continued, "As overall shipment volumes for smartphones and IT OLED panels have decreased significantly, there is intense price reduction pressure on both components and displays. While our performance in the first half was not bad, preparing thoroughly and persevering in the second half is most important for us to defend our position." Securities firms estimate that Samsung Display’s annual operating profit for this year will range from 3.5 trillion to 4.2 trillion won.

Jung Cheol-dong, CEO and President of LG Display, also addressed the price reduction pressures resulting from chipflation, saying, "We are feeling the impact of factors such as rising memory prices, but it is still within a level we can withstand through cost improvements."

Regarding the announced second-quarter results, he emphasized, "The announced figures simply reflect one-off costs such as workforce efficiency measures. Our core business operations are actually profitable. Given the nature of the display industry, the second half will perform better than the first, and we will do our utmost to improve our annual results."

LG Display posted sales of 5.6121 trillion won and an operating loss of 107.7 billion won in the second quarter of this year, mainly due to one-off costs associated with workforce streamlining (voluntary resignations). However, the company successfully returned to profitability for the first time in five years, with cumulative consolidated sales in the first half of 11.1461 trillion won and operating profit of 39 billion won.

Cheol Dong Jung, President and CEO of LG Display, is answering questions from the press at the '2026 Korea Display Industry Exhibition' held on the 22nd at COEX in Gangnam-gu, Seoul. Photo by Jin Young Kim

Samsung Display is focusing on widening the technological gap through large-scale investments in the Chungcheong region and accelerating the mass production of 8.6-generation IT OLED panels. Regarding the recently announced 67 trillion won investment and the plan to resume construction of the second industrial complex, President Lee stated, "Since this is a promise made to the public, it needs to be implemented without delay; we are currently preparing to resume right away." He also expressed confidence that mass production of 8.6-generation IT OLEDs will proceed without a hitch.

On the pursuit by Chinese companies such as BOE, he remarked, "Just as we have retained global leadership over the past 50 years of display history, we will only launch products when we are fully confident—thus, we are proactively preparing new technologies." In particular, regarding competitiveness in foldable OLEDs, he projected, "Excluding Chinese panel makers, Samsung Display far outpaces competitors in terms of quality and durability, so we will continue to maintain an overwhelming market share."

LG Display plans to expand applications for its 'tandem OLED' technology while also preparing next-generation semiconductor and display packaging technologies. President Jung revealed regarding their technology roadmap, "We are working to expand our outstanding 'tandem OLED' technology, known for its excellent lifespan and performance, beyond TVs and IT devices to include smartphones and other mobile products." For 'glass interposer,' the glass substrate technology applicable to semiconductor packaging, he explained, "We are researching and preparing every aspect of the technology—including materials and applications—from multiple perspectives."

Meanwhile, when asked about his impressions touring the exhibition booths, President Jung commented, "Seeing how thoroughly Samsung Display prepared made me think we must work even harder," signaling his intent for healthy competition.

This content was produced with the assistance of AI translation services.