Samsung Electronics has set quotation requests for OLED display panels to Chinese giant BOE for use in its Galaxy S series planned for next year, sources within the company told TheElec Wednesday.
The South Korean tech behemoth recently sent request for quotation, or RFQ, to BOE, the first step for a supply deal. Conventionally, the set maker shares the specs of its upcoming product as well as conditions such as price.
RFQs are usually sent six to eight months before the product goes on sale.
Samsung Electronics’ mobile business sent RFQs for three different smartphone models, the sources said.
All three uses OLED panels, with scan rates of 120Hz, 90Hz and 60Hz, respectively, they said.
BOE received the RFQs for the 90Hz model, while Samsung Display received those for 120Hz and 60Hz.
The supply deal is strongly likely to pull through and will mark the first time the Chinese display maker is supplying its goods for a smartphone to Samsung. BOE supplied its OLED panels for the first time last year for the Korean giant’s Galaxy Watch.
The Chinese company last month announced that it has developed a panel with Fingerprint-on-Display, or FoD, technology together with Qualcomm. Samsung has been applying FoD on the S series since 2019 as well as this year, and will likely continue to 2021.
Part of the reason BOE received the quotation was for Samsung Electronics to pressure Samsung Display to lower is panel prices, the sources also said.
Previously, Samsung Electronics have demanded Samsung Display to lower the price of the latter’s foldable OLED panels. Samsung Display has refused.
Samsung Electronics, in turn, is building its own supply line for ultra-thin glass __ which it uses as cover glass for foldable phones __ it previously exclusively received from Samsung Display. The display maker was previously the sole supplier for the cover glass used in Galaxy Z Flip.
The loss of some order from Samsung Electronics will likely result in a critical blow for Samsung Display, which also supplies to Chinese handset clients but rely heavily orders from Samsung Electronics. Samsung Display is also ending production of Liquid Crystal Display (LCD) within the year, which makes OLED sales all the more important.
Samsung’s S series sell around 35 million units a year, with each model selling around 10 million.