Samsung has decided to source some of its upcoming smartphone displays from outside the company, according to a new report from Korea. In a surprising twist, Samsung Electronics will no longer rely on Samsung Display for certain mid-range models. Instead, it plans to purchase panels from CSOT, a display manufacturer owned by TCL.
The shift may sound unusual, especially since both Samsung Electronics and Samsung Display operate under the same group. However, cost appears to be the driving factor. CSOT’s panels are reportedly at least 20% cheaper than Samsung’s. As memory prices continue to climb, Samsung seems to be cutting costs elsewhere to protect margins in its mid-range lineup.
The report claims Samsung has already placed an order for 15 million display panels from CSOT. These panels will be used in the upcoming Galaxy A57. They will also power several unnamed FE smartphones that are set to begin production in April. That schedule has fueled speculation about a possible Galaxy S26 FE, although no official name has been confirmed.
Not surprisingly, Samsung Display was not pleased with the move. The subsidiary reportedly challenged the decision and appealed to senior leadership within the group. Despite those efforts, Samsung Electronics chose to move forward with the external supplier.
