Samsung Display and LG Display have entered a new strategic partnership with the common goal of helping small and medium-sized (SME) suppliers from South Korea grow. The trade restrictions imposed by the Japanese government last year are still in effect, and this has persuaded the two Korean tech giants to cooperate and look for alternative solutions.
Samsung and LG’s display divisions have reportedly established a consultative body earlier this month comprising 30 display businesses across the supply chain, from materials to components and equipment sectors. The goal is to help local suppliers advance technologically so that larger brands like Samsung and LG can rely less on overseas companies and suppliers. According to the source, South Korean SMEs now aim to develop stepper exposure systems and ion implantation equipment with the conglomerate’s help.
As some of you know, Korean display manufacturers Samsung and LG have had great difficulties in acquiring the necessary materials for display manufacturing from Japan last year after the country imposed strict trade restrictions. Korean tech giants have been looking at alternative solutions since then, and it now looks like Samsung and LG are committed to helping local SMEs grow so they can reap the long-term benefits.
Meanwhile, the Korean government has been fostering local suppliers since last year with new policies that should provide investments of 5 trillion won by 2022 to 338 component suppliers. In addition, the Korean government is offering local suppliers 1.5 trillion won in tax benefits and subsidies.