Samsung Display: Chip Inflation to Challenge Display Industry in 2026

Samsung Display CEO Lee Choong-hoon stated that the display industry is set to face a severe situation in the second half of 2026, citing "chip inflation" as the primary cause. Lee shared this outlook at the K-Display 202{26} exhibition held in Seoul on Monday.

According to Lee, the surge in demand from the artificial intelligence sector has significantly increased chip pricing. This trend is expected to notably curb sales of smartphones and other IT products, exerting considerable price pressure on both component manufacturers and the display industry. He personally expressed a hope for semiconductor companies to lower their prices.

In terms of production, Lee confirmed that Samsung Display's G8.6 IT OLED production line in Asan is progressing well and is on track for mass production. The company also intends to restart its second Asan plant project, which was initiated in 201{17} but paused in 2020.

This restart is part of a recent commitment to invest 6{17} trillion won (approximately $2{17}.5 billion USD) in Asan, signaling Samsung Display's continued focus on expanding its manufacturing capabilities in the region.