Tech Souls, Connected.

+1 202 555 0180

Have a question, comment, or concern? Our dedicated team of experts is ready to hear and assist you. Reach us through our social media, phone, or live chat.

Breaking Barriers: LG Innotek’s Battle Against Stemco in Samsung’s CoF Landscape

In a bid to carve out a foothold in the fiercely competitive landscape of smartphone component supply, LG Innotek finds itself grappling with formidable obstacles as it seeks to assert its presence in Samsung’s CoF (chip-on-film) market. Despite concerted efforts and support from the Korean government to bolster the local CoF supply chain, LG Innotek continues to face stiff competition from industry stalwarts like Japan’s Stemco, hindering its progress and market penetration.

A Struggle for Supremacy

Reports from TheElec shed light on LG Innotek’s ongoing struggle to gain traction in the Samsung smartphone CoF market, with Stemco maintaining a dominant position in both overall volume and model-specific volume. Despite the formation of a local CoF supply chain orchestrated by the Korean government in 2021, LG Innotek finds itself trailing behind its Japanese counterpart, thwarting its ambitions for market leadership.

Niche Market Presence

As of 2024, LG Innotek and PI Advanced Materials continue to supply CoF and related materials for Samsung’s budget and mid-range smartphones, including the Galaxy A5 series. However, it’s worth noting that the lower tiers of the Galaxy A series and Galaxy M series utilize the CoG (chip-on-glass) method, which involves mounting chips on glass substrates, thereby limiting LG Innotek’s scope for market expansion.

Operational Outlook

Despite facing headwinds, LG Innotek remains resolute in its pursuit of market share, with its CoF production line projected to operate at approximately 70% capacity this year. Beyond its endeavors with Samsung, LG Innotek also extends its footprint in the smartphone arena by supplying CoFs to other industry players such as Oppo, Vivo, and Xiaomi. Notably, LG Innotek’s revenue surged to 20.6 trillion won last year, underscoring its resilience and commitment to navigating the complexities of the global supply chain landscape.

Share this article
Shareable URL
Prev Post

Apple’s Nano-texture Glass: Setting the Standard for Anti-Reflective Displays

Next Post

Fierce and Fearless: Camping Essentials That Empower Women to Conquer the Wilderness

Read next
Whatsapp Join