Seoul: The head of Samsung Display Co. said Thursday the company is expected to face growing challenges in the second half of 2026 due to concerns over inflation sparked by the U.S.-Iran war. Samsung Display Chief Executive Officer (CEO) Yi Chung made the remark ahead of the general meeting of the Korea Display Industry Association held in Seoul amid growing concerns over rising prices of global raw materials.

According to Yonhap News Agency, Yi Chung highlighted the unfavorable conditions due to rising memory chip prices, compounded by the U.S.-Iran conflict that is anticipated to lead to inflation. He expressed concerns about the situation becoming more difficult in the latter half of the year. Yi noted that if the war persists, the price burden of raw materials will rise significantly, which could further strain the company's operations.

The industry is already worried about the increasing global memory chip prices driven by the artificial intelligence (AI) boom. This situation may prompt smartphone manufacturers to cut down on shipments due to higher costs, subsequently reducing demand for display panels. Yi emphasized that although memory chip producers might experience strong performance, their clients are facing significant challenges. He stressed the importance for companies to focus on reducing production costs and collaborating with partners to boost competitiveness.