Samsung is considering using Chinese components for its OLED displays

Samsung, which has long avoided cooperation with Chinese suppliers of materials for the production of OLED displays, is changing its position, PhoneArena reports, citing the Korean publication KIPOST.

The main factor behind this decision was the rising costs of smartphone production. In the face of economic pressure, manufacturers are forced to look for ways to keep device prices at an acceptable level.

One of the main reasons for the increase in production costs is the transition to new 2nm chips. It is expected that in 2026 the Galaxy S26 series, like the iPhone 18, will receive new 2nm chips. For Apple, this will be the A20 chip, created using TSMC technology, while Samsung will try to prepare the Exynos 2600. However, if the Exynos chip is not ready, as last time, the company will be forced to use the competing 3nm Snapdragon 8 Elite 2 from Qualcomm. All this could lead to an inevitable increase in smartphone prices.

To avoid price increases, Samsung is considering sourcing organic materials for OLED displays from Chinese suppliers. The company has previously been reluctant to do so, as it would require revealing production plans. However, in today's economic climate, the only alternative is to raise the cost of devices, which could drive away customers. Apple is already considering raising prices for its iPhone 17 series, while Samsung is trying to avoid a similar move.

In general, both giants – Apple and Samsung – are looking for ways to reduce production costs, which affects the strategy of choosing suppliers of materials for smartphone components. Switching to new suppliers of OLED components could allow Samsung to contain the increase in the cost of the final product.