SEOUL -- South Korea's Samsung group will expand a domestic plant that makes organic light-emitting diode display panels, likely eyeing a future supply for Apple's iPhones.
Group unit Samsung Engineering has received a 715 billion won ($588 million) order to install new equipment at a panel plant run by Samsung Display in Tangjeong, in the country's central area. A clean room and other facilities will be set up inside existing buildings under the contract, which runs through the end of 2016.
Samsung Display has separately ordered equipment to make OLED panels. The new production lines are expected to go online by the end of 2017.
The group appears to be vying to win orders from Apple, which is expected to adopt OLED panels in its smartphone to debut in 2018. Samsung Display is the world's leader in small and midsize OLED panels, used in smartphones.
Rival LG Display also is investing in its facilities to supply to Apple. Samsung will tout its record of stable production to win orders. Apple usually sources the same parts from multiple suppliers.