Under the deal LG will supply 2 million units next year and boost shipments to 3 million and 5 million units in subsequent years. Initially, Samsung would get 77-inch and 83-inch white OLED (WOLED) TV panels.

The move will allow Samsung to expand in high-end organic light emitting diode (OLED) TVs as competition heats up in the lower end with Chinese vendors. OLED panels cost nearly five times more than liquid-crystal display (LCD) panels.

With this deal, Samsung could overtake Sony as the second largest supplier of OLED TVs globally.

LG will be helped into the black by the move.  Shipments of 2 million OLED panels will be a major boost, worth at least $1.5 billion and amounting to around 20-30 per cent of its total manufacturing capacity for large-size OLED panels, taking it to full capacity, according to analysts.

The company has been running its OLED factory below full capacity due to a limited customer base and as a pandemic-driven demand surge for new TVs has tapered off amid soaring inflation and slowing economy.

The company has been in the red for four consecutive quarters since the second quarter last year due to weakening global demand for electronic devices.