Deal makes Samsung largest shareholder in maker of Gorilla Glass

by: Bogdan PetrovanOctober 23, 2013

corning glass Corning

Samsung continues to consolidate its position in the electronics manufacturing industry with a deal involving Corning, maker of Gorilla Glass and other specialty products.

Samsung and Corning have long collaborated in a joint venture company called Samsung Corning Precision Materials Co, established in 1995, that produces substrate glass for LCD displays. Now Corning will assume full control over the joint venture, with Samsung set to receive in exchange $1.9 billion worth of convertible preferred shares in Corning. Samsung promised to acquire another $400 million worth of shares in Corning. Converting these shares in common stock would make Samsung the largest shareholder in the glass making company, with a 7.4 percent stake.

Samsung said it doesn’t plan to influence in any way the management of Corning, but becoming a large investor should give the Korean giant a definite advantage in manufacturing. “By moving beyond a simple glass supply alliance, Samsung is trying to take a longer-term view for its future product pipelines as Corning has vast technologies not just in displays but in other emerging areas”, said Brian Park, an analyst interviewed by Reuters.

This is the latest in a series of moves that Samsung made to consolidate its display manufacturing business. The conglomerate recently acquired Novaled, a German company developing OLED materials, and is a major shareholder in Sharp, the Japanese display maker that supplies panels to Apple, among others.

Corning is best known for the Gorilla cover glass used on most high-end smartphones, but the American company also makes the Lotus substrate glass, optical fiber, and other high-tech products. Corning is also developing Willow, a flexible glass that is suitable for flexible displays and can be manufactured in high-productivity roll-to-roll processes.

  • MasterMuffin

    For Samsung Galaxy Round 2 I guess. Samsung is getting pretty big, I’m a little scurred!

    • Fievel

      I just hope Google scrawled down the formula for transparent aluminum in Star Trek IV for their Motorola phones.

      • MasterMuffin

        Not available for mobile

  • Luka Mlinar

    No matter. Sapphire is the next big thing anyway.

    • I have a feeling that it won’t get as much traction as you suspect.

      • Luka Mlinar

        Time will tell :/

  • beatles

    companies in their right mind should be cautious dealing with samsung, who knows they could be developing a similar product inhouse if they could get hold of intricacies of that technology? look what happened with their past LCD partneship with has even copied a Dyson vacuum cleaner, clearly samsung strategy is to try to reverse enginner any lucrative product and once they’re at a level ‘copying’ a rival product to an extent, they will try to bash their competitors image so the market could shift to their side. what a corrupt company, samsung

    • John Locke

      Your hatred of Sammy strong my friend.

      • Adrian Remus

        Mine is stronger. I can crack a glass just by concentrating on how much i hate Samsung!

        • John Locke

          Well I don’t hate M$ that much.

          • Adrian Remus

            I know, you still have to use windows on your pc. Anyway, i sais that i hate samsung, not Android. I actually believe Android is a great OS but it’s not for me.

  • Moosa Mahsoom

    Another Apple supplier under the influence of Samsung. Of Course, let’s seeh how much Samsung keeps to the promise.