Flexible display tech theft to cost Samsung US$5.8 billion
According to recent reports, Samsung has been hit by a theft of its technology and design secrets. A supplier to the South Korean electronics giant has been charged with this crime, which involved the sale of hardware and plans for the by-now famous foldable OLED screen to feature in some next-gen phones. According to reports, at least one Chinese company acquired this material, for which it may have paid millions in US dollars.
Samsung has publicly conceded that the theft may result in considerable losses for the company over the next 3 years. More specifically, it now projects that it will lose US$5.8 billion in revenue, as well as $890 million in profits, due to the loss of exclusive access to the folding display techniques in question. They include the method by which glass adheres to fully-flexible OLED layers, as well as the equipment with which this is done.
If Samsung's new forecast is accurate, it could be the worst hit the company has taken in terms of financial losses since the Note 7 recall incident. The theft has also resulted in legal action against the CEO and some additional executives of Toptec, the supplier in question.