Samsung, San’an Opto Sign Agreement to Co-develop Micro LED Display

Samsung signed a prepayment agreement with San'an Optoelectronics to secure a stable and sustained source of LED chips for its production of Micro LED displays. (Image: Samsung)

Chinese LED behemoth San’an Optoelectronics today issued a document announcing that it will team up with Samsung to Co-develop Micro LED displays.

Samsung and San’an Opto signed a prepayment agreement as the establishment of their long-term partnership.

The Korean display manufacturer will give San’an Opto a prepayment of USD 16.83 million to secure a certain amount of LED chips used for producing displays. ‘There is a possibility to discuss potential expansion plans ahead of schedule if Samsung’s monthly orders demand for a chip supply over the agreed amount,’ wrote the document.

The discussion of the strategic partnership for Micro LED development between the two companies will continue.

The document said that Samsung will consider San’an Opto as its major chip supplier once the Chinese LED chip maker become able to mass produce the desired chips. At that time, these two will open up a negotiation for a new supply agreement.

Through the strategic collaboration, Samsung is looking to secure a stable source of chip supply, while San’an Opto expects to lead the Micro LED market.

The prepayment agreement starts its effect on February 5 until the end of the third year after the mass production begins. By that time, the termination of the agreement will be automatically deferred to a year later unless the two firms call a halt to the deferral 120 days before the last day.

San’an Opto includes this agreement as a factor that will be affecting its earnings for the next three years.

Disclaimers of Warranties
1. The website does not warrant the following:
1.1 The services from the website meets your requirement;
1.2 The accuracy, completeness, or timeliness of the service;
1.3 The accuracy, reliability of conclusions drawn from using the service;
1.4 The accuracy, completeness, or timeliness, or security of any information that you download from the website
2. The services provided by the website is intended for your reference only. The website shall be not be responsible for investment decisions, damages, or other losses resulting from use of the website or the information contained therein<
Proprietary Rights
You may not reproduce, modify, create derivative works from, display, perform, publish, distribute, disseminate, broadcast or circulate to any third party, any materials contained on the services without the express prior written consent of the website or its legal owner.

Tokushima, Japan - 6 December 2023: Nichia, the world’s largest LED manufacturer and inventor of the high-brightness blue and white LED, is scheduled to launch two new UV LEDs in March 2024: UV-B LED with a peak wavelength of 308nm and U... READ MORE

High current density, very low thermal resistance and low-profile mean that lighting equipment manufacturers can increase brightness while reducing system size Flat LED package for easy integration and closest mounting of optics to light emitt... READ MORE