Lee Cheong, president of Samsung Display, forecasted that the display market will face challenges in the second half of the year due to rising semiconductor prices, a phenomenon referred to as 'chipflation.' Despite a global economic slowdown and fierce competition from China, he expressed determination to solidify market leadership through advanced panel technologies, including foldable phones.
Speaking to reporters on July 22 at the 2026 Korea Display Industry Exhibition in Seoul, Lee noted, "The recent surge in key semiconductor prices has increased cost burdens for finished product manufacturers, leading to a decline in overall volumes of organic light-emitting diode (OLED) displays for smartphones and IT devices."
He added, "This situation has put strong pressure on display panel prices, making the business environment for the second half quite challenging."
Lee acknowledged that while the first half of the year showed relatively solid performance, maintaining profitability will be a key challenge in the second half due to various uncertainties. However, he emphasized that close collaboration with major global clients could help the company navigate this difficult period and ultimately secure advanced technological capabilities that competitors cannot match.
Regarding the foldable phone market in the second half, Lee expressed strong confidence. He highlighted the upcoming launch of the 'Galaxy Z Fold/Flip 8' series in London, stating, "Foldable displays are a core area where Samsung Display maintains a significant technological edge. We will continue to apply differentiated form factor technologies, such as improved screen creases, enhanced durability, and low-power technologies, to maximize the quality of the Galaxy Z series and further strengthen our market dominance."
In response to the aggressive competition and production capacity expansion from Chinese display manufacturers, Lee proposed technological differentiation as the only viable solution.
He stated, "A market that competes solely on production volume or price is meaningless. What matters is proactively implementing and presenting unique and differentiated technologies that customers desire. To be the preferred choice in the global supply chain, including major clients in North America, quality and a distinct technological gap are essential."
Lee reaffirmed the company's commitment to its large-scale investment plans in the Chungcheong region, including next-generation line expansions.
When asked about the timeline for executing the three major mega-project investments, he responded, "We are diligently progressing through the preparatory procedures for establishing the next-generation line. We will ensure the advancement of foldable displays, as well as the 8.6-generation OLED line for IT and micro OLED for extended reality (XR) devices, targeting the premium market with advanced technology investments without any setbacks."
* This article has been translated by AI.
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