Lee Cheong, CEO of Samsung Display, forecasted that the display market environment will be challenging in the second half of the year due to the impact of rising semiconductor prices, referred to as 'chipflation.' Despite a global economic slowdown and fierce competition from China, he expressed confidence in solidifying market leadership through advanced panel technologies, such as foldable phones.
Speaking to reporters after the '2026 Korea Display Industry Exhibition' held at COEX in Gangnam, Seoul, on July 22, Lee noted, "The recent surge in key semiconductor prices has increased cost burdens for finished product manufacturers, leading to a trend of reduced overall volumes for smartphones and IT-related organic light-emitting diode (OLED) products."
He added, "This situation has put strong downward pressure on display panel prices, making the business conditions for the second half quite difficult."
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 by continuing close collaboration with major global clients, Samsung Display could emerge from this difficult period with advanced technological capabilities that competitors cannot easily 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 an overwhelming 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 completeness of the Galaxy Z series and further strengthen our market dominance."
In response to the aggressive pursuit and capacity expansion efforts of Chinese display companies, 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 North American clients, quality and a distinct technological gap are essential."
Lee reaffirmed his unwavering commitment to the recent large-scale investment plans in the Chungcheong region and the expansion of next-generation lines.
When asked about the timeline for executing the three mega-project investments, he responded, "We are diligently progressing through the preparation process for establishing next-generation lines. We will ensure the advancement of foldable displays, as well as the 8.6-generation IT OLED line 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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