Samsung estimated it stands to lose as much as $5.8 billion in sales and $890 million in profit over the next three years after one of its suppliers disclosed the South Korean vendor’s new display technology to Chinese rivals, Nikkei Asian Review reported.
The news came as South Korean prosecutors indicted executives from Toptec, which makes the equipment used to manufacture the display panels in question, for illegally selling access to the technology.
Companies suspected of receiving the stolen information include Chinese display company BOE Technology and three others.
Samsung recently touted the technology as a key enabler of a new pipeline of innovative products, including devices with malleable screens. The company is expected to release its first device with a folding screen in early 2019.
In a statement to Reuters, Toptec denied it had ever shared Samsung’s business secrets, adding it would “fully cooperate with the legal proceedings to find the truth in court”.Subscribe to our daily newsletter