Apple is on the lookout for how to diversify its OLED display supply chain by 2018, when it planned
According to Korean media, to diversify itssupply chain, Apple intends to invest up to $ 2.6 billion in LG's sixth generation OLED display plant. The investment will ensure that all OLED products from the factory are exclusively for Apple. When the factory begins to operate, it will produce about 30 thousand units of OLED panels of the sixth generation.
"Samsung Display is the only display manufacturer that meets Apple's strict quality criteria at the moment," an industry source said on condition of anonymity."LG Display is said to meet 70% of the volume of requirements, while Chinese display makers are still struggling to catch up with LG."
The investment plan has not yet been finalized, howeverboth companies have already held preliminary negotiations on this issue. It is expected that this transaction will be completed after a meeting of the council, which is planned to be held by the end of this month. Even if Apple invests $ 2.6 billion in the production of LG Display, the manufacturing company will be able to start producing OLED displays only in 2019, and this is not soon.
LG also planned to start supplying OLED panelsfor Apple earlier, but it was not able to acquire the Tokki vacuum unit, which is the best and most advanced OLED production equipment on the market. However, Tokki, a Canon-owned company, reserved the supply of its equipment for Samsung, its largest customer, but Tokki was not able to estimate the size of its supply to meet demand from other Chinese OEMs.