The funds would be given to LG as an advance payment for future panel supplies. Apple allegedly wants to secure the supply of 45,000 units of the 6.5th-generation OLED panel monthly from 2019.
The two companies have refused to comment on the deal, possibly due to Apple's agreement with Samsung to be the exclusive supplier of OLED displays for the upcoming iPhone 8. By working with Apple, LG can reduce the risks from a huge initial spend on OLED production and Apple gains a secondary supplier.
LG is likely to build a production line dedicated to iPhone orders. An OLED production line with a monthly capacity of 30,000 units is said to cost about $3 billion.
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