Samsung now owns 7.4 percent of Corning, the New York-based company best known for its Gorilla Glass technology. The deal comes after Corning took full control over Samsung Corning Precision Materials Co. Ltd., which was estimated at $1.9 billion; Corning’s investment converts to Samsung’s small stake. The deal was described by Corning as “strategic,” a move that would strengthen future collaborations between the two companies—a long-term LCD glass supply agreement between Corning and Samsung Display has also been struck until 2023.
Corning currently supplies its Gorilla Glass technology to companies for use in many high-end smartphones; Apple, HTC and Motorola all use Gorilla Glass in addition to Samsung. Kinam Kim, president and chief executive officer of Samsung Display, said the Korean company is looking forward to developing “new market opportunities in consumer products,” but didn’t elaborate on what those new opportunities might be.
More than anything, the move sounds more focused on pleasing shareholders and further pushing Corning’s business. Corning gets full control over Samsung’s Corning Precision Materials, while Samsung gets a manufacturing contract for the next ten years. What kind of collaboration comes through the deal remains to be seen.