Samsung Display, the sole supplier of foldable displays for Samsung Electronics, has acquired majority stake in ultrathin glass substrate firm Dowoo Insys as part of its plan to secure adequate supplies, according to industry sources Tuesday.
The subsidiary of Samsung Group purchased 600,000 shares of Dowoo Insys for 13.5 billion won ($11.6 million) last week through a collaborative fund with Samsung Venture Investment Corp., making it the largest shareholder with a total of 27.7 percent stake.
Samsung Display has so far invested 48.5 billion won in the supplier since May 2018.
Samsung Electronics introduces its second foldable phone design at Samsung Developer Conference in October. (Samsung Electronics)
Considering that the investment was made amid growing forecasts that Samsung Electronics’ smartphone business has decided to adopt the ultrathin glass material for its second edition of Galaxy Fold, some market watchers have speculated that the company could acquire 100 percent stake in the supplier in the near future.
Some news reports said it could additionally buy 23 billion won worth convertible bonds of Dowoo.
“There have been moves to gradually increase stake in the firm,” confirmed a Samsung Display official. “Yet, we can’t confirm the exact figures or further moves.”
Following the latest investment, Samsung will be able to replace the existing colorless polyimide films that are largely made in Japan with the glass material produced in Korea that is as flexible as polyimide films, but more robust.
By Song Su-hyun (firstname.lastname@example.org)