Samsung display

Corning buys out Samsung's stake in LCD joint venture; ten-year supply deal inked

Samsung has acquired a 7.4 percent share in smartphone Gorilla Glass maker Corning, as part of a "strengthening" in the partnership between the two companies. The deal will also see Corning taking full control of Samsung Corning Precision Materials, an LCD panel joint venture in which Samsung currently holds a 43 percent stake. Samsung will make an additional investment of $400 million in Corning by subscribing to new convertible preferred shares, today's press release states.

In return, Samsung will get $1.9 billion worth of convertible preferred shares in Corning, equal to a 7.4 percent stake in the company. At the same time a ten-year new supply agreement between the two has been inked, adding around $2 billion to Corning's annual sales.

Corning's Gorilla Glass is used in many high-end mobile devices, including those of Samsung's competitors — and today's news may be of concern to the company's smartphone rivals, many of whom are already reliant on Samsung for other components.

Source: Corning; via: Engadget


Reader comments

Samsung acquires 7.4 percent share in Gorilla Glass maker Corning


Good move for Samsung, bad for consumers. When a company expands its reach along a supply chain, it tends to be bad for competition.

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It is why they are number one. Even when you buy a Nexus, your paying Samsung for the phone.

Then they go ahead and use that money to out advertise you and tout whatever Galaxy phone is the pick of the day

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You realize that Samsung has been around for many years and makes A LOT more than just smartphones or even general electronics, right?

Of course, but if they get a huge chunk of every phone my point is valid.

My S-Pen went through hell to deliver this important message to you

This is a play to reduce costs and increase margins. Investments don't impact operation costs, but the goodwill this generates with corning helps them negotiate a better supply deal. Also better to make this move before a competitor does so.

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Don't think they record goodwill over such a small ownership?

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Who cares. Gorilla glass stinks. Ive scratched every phone i ever had soon after i got it. ..and it had gorilla glass. I dont think Its very Good at all. But they market it well. Hype over reality.

Its not scratch proof. Its scratch resistant. If you beat it up of course its gonna scratch. *eye roll* If you've scratched every phone you've have that has had it, you're the problem not the glass. I've never scratched any device I've had that has had it. Gorilla glass is great. But its not indestructible.

Gorilla glass is just a brand name attached to corning's hardened glass. Is it the best? Probably, but by a very small margin. No hardened glass is perfect or absolutely scratch proof. But, it is virtually the only screen brand with any name recognition, which means that common mobile device buyers seem to think it is the industry Messiah in a market full of lepers. I've never had a scratch on non-gorilla glass products.

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What are you doing to your poor phones? I've never scratched the display on any of the phones or tablets I've owned, some gorilla glass some not. Never used a screen protector either (don't get me started on how much I hate those), but maybe you need one. That or be a little more careful. How hard is it to not let hard objects rub against your screen?

It's a good idea, but history tells us that the game will always keep changing, just as you think you have it figured out and won.

Two weeks from now a new group/company could show off a prototype of a screen made with a new process/materials that is better than gorilla glass, and patented into oblivion. But nonetheless it is important that Samsung covered this base.

U mean Corning will be sitting on their asses all the while? What's to stop them from researching on better ways to improve gorilla glass?

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Gorilla Glass can be scratched to hell and back if even a grain of sand gets into your pants pocket etc. Bring on the Sapphire screens please!

I carry a pen, a stylus, and headphones in my pocket with my cell phone. I've had this phone for almost a year now and it doesn't have a scratch on it

Believe it or not, a grain of sand is harder than any of those things, and can easily scratch gorilla glass 2. even sapphire screens aren't scratch proof... But they are very highly resistant.

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Sand is very tough and since both it and glass consist of silica, it's no wonder. It is still GLASS. It'll still scratch and break, the threshold is just higher. This is why I still put a screen protector on my phone.

This is a great move for Samsung. And as Corning continues to R&D, Samsung will have access to the latest and greatest technology.

Troll? You have the wrong thread my friend, I am not here but hit a Tmo thread and you could have a valid point. Or a Nexus 4.

Just because I have valid reasons I feel something sucks, don't mean my shoes will fit you.

My S-Pen went through hell to deliver this important message to you

What are the alternatives to Gorilla Glass? They appear to be the main/only? player in the market.