Samsung Display, LG Display chiefs vow next-gen push despite 'chipflation' pain

Lee Cheong, president and CEO of Samsung Display and chairman of the Korea Display Industry Association, speaks with reporters at the 2026 Korea Display Industry Exhibition held at COEX in Gangnam-gu, Seoul, on Wednesday. [Joint press corps]

The ripple effects of "chipflation" — rising semiconductor prices driving up the cost of finished devices — are now hitting the display industry hard. While industry leaders described chip price increases as having "an unfavorable impact" back in March, the language on Wednesday had grown markedly sharper, with one executive saying things are "too difficult to bear." The outlook for the second half remains clouded, though both companies said they are doubling down on next-generation technology to fight through the downturn.

Lee Cheong, president and CEO of Samsung Display and chairman of the Korea Display Industry Association, told reporters at the 2026 Korea Display Industry Exhibition at COEX in Gangnam-gu, Seoul, on Wednesday that chipflation has made this year "extremely difficult." "It's really too hard, and our customers are struggling terribly too," he said.

Because displays are components built into finished products, profitability improves only when shipments of those end products rise. But soaring semiconductor prices have pushed up the cost of finished devices, dampening consumer demand and dragging down shipment volumes. The surge in chip costs has also prompted device makers to pressure suppliers — including display manufacturers — to cut their own prices.

"Smartphone volumes are falling sharply, and shipments of IT devices like laptops are dropping significantly as well — overall volumes are down enormously," Lee said. "The display side is also under very heavy pricing pressure." He added that he hoped semiconductor prices would come down.

Even so, Lee stressed the importance of holding on. "I think what matters most right now is weathering this period well and preparing thoroughly until a better business environment arrives," he said. "We are working very hard to make the second half not turn out badly. Proactively preparing with the technology and pricing that customers want is the most important thing."

Jeong Cheol-dong, president and CEO of LG Display, speaks with reporters at the 2026 Korea Display Industry Exhibition held at COEX in Gangnam-gu, Seoul, on Wednesday. [Joint press corps]

Jeong Cheol-dong, president and CEO of LG Display, also acknowledged that chipflation is "having an impact" on the company.

He said differentiating through technology remains LG Display's core growth engine. "All of our employees are pulling together and focusing on technology," Jeong said. "We will do our best to deliver better numbers in the second half."

LG Display also announced plans to expand its tandem OLED technology into mobile devices, including smartphones. "We are preparing to extend tandem OLED beyond TVs and IT devices into smartphones, and we are also developing various other technologies including Flip — a next-generation OLED technology," Jeong said.

Display innovation is increasingly becoming a competitive differentiator for handset makers. Samsung Electronics recently unveiled the Galaxy Z Fold 8, which incorporates Samsung Display's Flex Titanium technology among other new display advances.

Lee said Samsung Display holds a commanding position in the foldable market. "Excluding Chinese players, Samsung Display has an overwhelmingly dominant share of the foldable market, and that will continue," he said. He added that US customers are also preparing foldable products. "I expect an entirely new dimension of the foldable display market to open up. You shouldn't put something out there if you're not confident in it," he said.

Some analysts have warned that China could eventually surpass South Korea in OLED output, an area where South Korea currently holds the top position. Lee acknowledged the challenge but expressed confidence. "I think it is a very significant challenge for the Korean display industry," he said. "But it is important to prepare for the technologies that come next. Korean displays have maintained world-class status for more than 50 years, and I believe we will prepare better and prevail."

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