Seoul, Jul 14 (IANS): Samsung Electronics is in talks with competitor LG Display for the purchase of display panels amid its transition to production of next-generation display.

According to the sources, Samsung Electronics and LG Display may sign a deal on LCD TV panel supply in the near future, reports Yonhap News Agency.

The move came after Samsung Display, a display maker under Samsung Electronics, announced earlier this year that it will discontinue its LCD screen production from next year and will speed up its shift toward quantum-dot (QD) display.

Industry insiders originally predicted that Samsung Electronics could buy LCD panels from Chinese firms, such as China Star Optoelectronics Technology and BOE Technology Group, as well as Sharp now owned by Taiwan's Foxconn Group.

Analysts expect that LG Display's supply volume to be worth between 1 trillion (US$833 million) and 2 trillion won if the deal is secured. LG Display plans to supply large-size LCD panels from its plant in Guangzhou, China.

Samsung and LG are rivals in the TV industry, with the former representing QLED TV and the latter spearheading OLED TV. However, history shows the two sides can work as partners.

In 2017, Samsung Electronics received LCD screens for 65-inch and 75-inch TVs from LG Display after Sharp abruptly decided to cut its display supply.