Samsung Display and LG Display have formed a new strategic partnership to support South Korean small and medium-sized suppliers. The two companies have taken this step as an alternative solution to trade restrictions imposed by the Japanese government last year. Due to these restrictions, Samsung and LG have faced serious difficulties in obtaining the necessary materials for display production from Japan.
The display divisions of Samsung and LG have already created a consultative body. It consists of 30 display businesses from the materials to the components and equipment sectors. The main priority of this collaboration is to reduce the dependence of larger brands on foreign companies and suppliers, as well as to facilitate the technological advance of local suppliers. For example, South Korean small and medium-sized companies are going to develop stepper exposure systems and ion implantation equipment with the conglomerates' aid. The Korean government also supports local suppliers. Last year, it introduced a set of policies aimed to provide investments of 5 trillion won by 2022 to over 338 component suppliers. It has also assigned 1.5 trillion won in tax benefits and subsidies to local companies.