As pressures from rival Chinese display manufacturers and trade restrictions are mounting on Samsung Display, the company has decided to consolidate its supply chain and lay the foundation of a new OLED assembly plant in Vietnam.

Samsung will invest $1.8 billion in this new OLED display factory in Vietnam, which should be operational in 2026.

Negotiations are underway, and the Korean media reports that Samsung Display Vietnam and Bac Ninh Province authorities have signed a memorandum of understanding.

Samsung's new OLED factory will be located in Yen Phong Industrial Park in Bac Ninh. Samsung already operates a small-to-medium OLED and foldable display production line in the same province.

Gearing up for OLED laptops and tablets

While smartphones have been using OLED displays for a while, the laptop and tablet markets are new playgrounds for the OLED industry. The new $1.8 billion OLED line in Vietnam will be equipped to assemble laptop and tablet OLED panels.

Several reasons have reportedly pushed Samsung Display to want to set up a 2nd OLED assembly line in Vietnam and create a supply hub there. One is that the company wants to stay on top of things as demand for laptop and tablet-grade OLEDs increases.

Another reason is that, aside from Vietnam, Samsung Display assembles OLEDs in China. By building a second OLED assembly plant in Vietnam, the company wants to minimize the risk of supply chain issues potentially caused by the US-China trade conflict.

Finally, Chinese display manufacturers are slowly increasing their influence. Although Samsung Display remains the world's top OLED supplier, rivals like BOE have improved their manufacturing. After years of trying and failing, BOE reportedly entered Apple's OLED supply chain for the rumored iPhone SE 4. Samsung Display intends to maintain its leadership over the growing segment through a reliable manufacturing infrastructure.

The story continues after the video

As for Samsung Display's supply chain strategy, reports say that Samsung will continue manufacturing OLED components in Korea. Meanwhile, its plants in China and Vietnam — including the new $1.8 billion facility — will handle assembly work.

Samsung's new Vietnam factory should be ready to assemble OLED components in 2026. The facility should have a yearly capacity of putting together roughly 10 million 8.6th-generation OLED panels manufactured in Korea.

The post Samsung Display to build new $1.8 billion OLED facility in Vietnam appeared first on SamMobile.