If the product prices of set (finished goods) companies rise due to the tariff on U.S. imports, there may be downward price pressure on various component suppliers such as display manufacturers, so we are keeping a close eye on the situation.
Lee Cheong, president of Samsung Display, met with reporters at the 'K-Display 2025' exhibition, which opened on the 7th at COEX in Gangnam, Seoul, to address the impact on the display industry following U.S. President Donald Trump's comment about a '100%' tariff on semiconductors, stating, 'Since many semiconductors are used in our customers' products, ultimately the cost (price) will go up.'
The president noted regarding direct investment in the U.S., 'I haven't thought about it yet,' and said, 'How we can effectively negotiate and prepare with customers, given the price pressure, will be crucial.'
Samsung Display is currently establishing production bases in Cheonan and Asan in Korea, as well as in China, Vietnam, and India. If the tariffs on specific items from the U.S. are enacted and mobile and home appliances are adversely affected, it is anticipated that component manufacturers like Samsung Display will experience indirect pressure such as price drops.
Samsung Display plans to focus on optimizing production by utilizing existing supply chains rather than investing directly in the U.S., while accelerating cost competitiveness through manufacturing innovation based on artificial intelligence (AI). However, concerns were raised about a potential decline in demand due to tariff impacts in the second half of this year.
The president stated, 'Traditionally, the display industry performs well in the second half of the year due to new product launches from customers, but there are some worrying aspects this year,' adding, 'The possibility of product price increases due to tariffs is high, and consumer spending is expected to slow, leading to conservative business operations from customers.'
In response to a question about the 'foldable panel market outlook,' he said, 'We are already leading the foldable market,' and added, 'As the latest Samsung Electronics Galaxy foldable phone is receiving a positive response, we expect our customers to ship more foldable phones next year or thereafter.'
He also added regarding the 'U.S. big tech order plans,' 'We are always ready and prepared to take on new challenges in new places with determination.'
Samsung Display supplied organic light-emitting diode (OLED) panels for the front and main displays of the Galaxy Z Fold7 and Flip7. It is expected that Samsung Display will also supply panels for the next Apple foldable phone.