Speaking to Reuters on Thursday, Chung said the surge in oil prices comes at a time when the technology sector is already facing elevated chip costs, which are contributing to higher prices for smartphones, personal computers, and other consumer electronics.
“When oil prices rise, the prices of these raw materials will also rise,” Chung said, noting that many essential materials used in electronics, such as films for displays, are derived from crude oil. “When this becomes a reality, I expect the cost burden to become significantly greater.”
Samsung Display, a unit of Samsung Electronics, produces flat-screen panels for Apple’s iPhones and MacBooks, as well as for Samsung’s own mobile devices. The company’s warning underscores broader concerns about rising production costs across the tech supply chain amid global energy volatility and geopolitical uncertainties.