8/1/16

Samsung to Buy Phone Parts from Archrival LG

Samsung is expected to use parts made by perennial rival LG for its Galaxy series of smartphones.

Samsung on Sunday said it is assessing the 2-metal chip-on-film from LG Innotek, a part that connects display panels to a main circuit board.

It is rare for Samsung to use parts by a competitor in the key areas of smartphones, TVs and other home appliances. It has usually bought chips and LCD panels from SK Hynix or Chinese companies, but hardly ever from LG.

The traditional culture of Korean conglomerates means that they all have fingers in every pie rather than concentrating on key areas, so LG Innotek competes directly with Samsung Electro-Mechanics.

An industry insider said this could mean a shift at Samsung to a more modern approach under de facto chief Lee Jae-yong, who wants to use the best products and components regardless of the origin.

The film-type component from LG can be folded, unlike rival products, and can be used in Samsung's smartphones with curved edges.

LG plans to begin full-fledged production of the component in the second half of this year.

http://english.chosun.com/

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