Samsung Display and LG Display are accelerating equipment deployment and capital allocation for next-generation OLED production, positioning themselves to secure long-term dominance in the premium smartphone display segment ahead of a key Apple decision later this year.
According to local industry sources, both companies are now mobilizing Color Filter on Encapsulation, or CoE, production capacity in anticipation of Apple’s internal third-quarter 2026 deadline to finalize whether its 2027 iPhone Air will adopt the ultra-thin, low-power display architecture.
The move reflects a broader shift among Korea’s top panel makers to reinforce their lead at a time when Chinese rivals remain technically blocked from the high-spec OLED tier.
CoE technology replaces a conventional plastic film in OLED displays with a printed color filter, making the panel both thinner and more power-efficient. By allowing more light to pass through the screen, it can maintain the same brightness while using up to 30 percent less power, which is a key advantage for foldables and AI-enabled smartphones, where space and battery life are at a premium.
Samsung Display, the first to commercialize CoE under its Eco OLED branding in 2021 with Galaxy Z Fold3, is already using the technology in its foldable lineup and will deploy it in its upcoming Galaxy S26 Ultra, the first non-foldable bar-type model to do so. The company is reportedly currently in talks with equipment suppliers to make supplemental investments in its sixth-generation OLED line, with backplane process tools expected to arrive as early as the fourth quarter of this year.
LG Display, which lacks existing CoE-capable infrastructure, is also reportedly now activating a portion of its 70 billion ($476.5 million) investment allocated to its Paju OLED facility to secure CoE-specific tools. This is expected to be part of its broader 1.26 trillion won investment plan announced lasst year.
Unlike Samsung, LG had not prioritized CoE until now, given Apple’s previous models did not use the technology. That might have shifted. Apple’s iPhone Air 2, currently under redesign for a potential spring 2027 launch according to The Information, is being considered as the first ultra-thin iPhone model to use CoE. The decision, due by Q3 this year, would follow Apple’s first use of CoE in its 2026 foldable iPhone.
Samsung Display has secured an exclusive supply deal for the foldable iPhone’s OLED panels for at least two years, according to Kiwoom Securities analyst Kim So-won.
The manufacturing complexity of CoE remains a critical barrier to entry. BOE, the Chinese panel maker, was excluded from the iPhone 17 OLED supply chain after failing to meet LTPO yield and reliability targets.
mjh@heraldcorp.com
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