President Lee Cheong of Samsung Display said the display market is likely to face difficulties in the second half of this year because of "chipflation," as rising semiconductor prices are increasing the cost burden for finished goods. He said that as volumes of organic light-emitting diodes (OLED) for smartphones and information technology (IT) decline, the cost pressure on finished goods makers is leading to calls to cut panel prices.
Lee met with reporters on the 22nd after finishing a booth tour at the Korea Display Industry Exhibition (K-Display 2026), which opened at COEX in Gangnam-gu, Seoul, and said, "Because of chipflation, the second half (business conditions) will be difficult." He added, "Smartphones are dropping a lot, and IT OLEDs are also dropping a lot," and "As overall volumes decrease, significant price pressure is coming to components and displays as well."
Rising prices for memory and storage are also affecting demand for finished goods such as smartphones and PCs. According to market research firm Omdia, global desktop and laptop shipments in the second quarter of this year were 65.67 million units, down 3.6% from a year earlier. Counterpoint Research said second-quarter global smartphone shipments also fell 11% from a year earlier, marking the lowest second-quarter performance since 2013.
Lee said, "If we, including our customers, endure this period well and overcome it, we will build even better capabilities afterward," adding, "The first half was not that bad, and we are working very hard to make sure the second half is not bad either." He also said, "It would be nice if semiconductor companies offered lower prices," adding, "It's really very hard, and all of our customers are struggling."
He said Samsung's investment plan in the Chungcheong region, which includes Samsung Display, will move straight into preparation. Asked when investment at the Asan Complex 2 would resume, Lee said, "We need to do it right away," adding, "We are preparing now."
Samsung announced on the 2nd that it would invest about 140 trillion won in the Chungcheong region. Of that, Samsung Display plans to invest 67 trillion won in Asan to build a production base for next-generation smartphone displays such as foldables and for ultra-high-resolution microdisplays for Extended Reality (XR) devices.
Regarding the 8.6-generation IT OLED production line, he said, "It is currently proceeding without issues," adding, "I think it will move into mass production without major problems." He added, "We are collaborating to make products that satisfy customers."
Samsung Display has invested 410 billion won in the A6 line in Asan, South Chungcheong, to establish an 8.6-generation IT OLED mass production system by 2026 and has begun full-scale operation. The facility is designed to improve production efficiency for laptop and tablet panels by using 8.6-generation mother glass, which is larger than the existing 6th generation for smartphones.
In the foldable OLED market, the company expressed confidence it would maintain its lead by emphasizing quality and durability. Lee said, "Excluding Chinese customers and companies, we have an overwhelming market share in the foldable market," adding, "I think our technology is far better in terms of quality, durability, and display characteristics." He added, "We have maintained an overwhelming share so far and will continue to do so."
Samsung Electronics will hold its second-half Galaxy Unpacked event in London, United Kingdom, at 10 p.m. (Korean time) today and unveil three new foldable phones. On the foldable panels for the new products, Lee said, "If we were not confident, we would not have released them."
He left open the possibility that competitors could enter the foldable panel market. Lee said, "I think competitors can come in at any time," adding, "The only strategy is to push ahead with differentiated technologies that customers want. That is the only strategy."
On competition with China's BOE, he emphasized not only technology but also price competitiveness. He said, "In the end, the most important thing is to proactively prepare technologies and prices that satisfy customers," adding, "Whether we can do this or not translates into the competitiveness of corporations." He added, "In terms of production volume, China is expected to keep increasing, and that is a very big challenge for us," and "Korea's display industry needs to push ahead with OLED and keep preparing the technologies that come after."
Lee also said, "Korea's display industry has a history of more than 50 years and has maintained the world's best status almost every moment, and we must not be pushed aside now," adding, "We will prepare better and overcome this."
Lee took office in March last year as the 10th head of the Korea Display Industry Association. In his welcome remarks at the K-Display 2026 opening ceremony, he said the spread of artificial intelligence (AI) is creating new demand for the display industry. He said, "The expansion of AI servers and data centers is leading to demand for high-performance displays and optical components, and on-device AI devices inherently require low-power, high-definition panels."
He continued, "New markets are opening rapidly in areas that have not been our core so far, such as smart glasses, AI edge devices, and humanoids," adding, "K-Display's new prosperity will begin when bold investment by large corporations and innovative technologies from materials, components, and equipment corporations align with active government support."