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Samsung may want to push BOE out of its LCD TV panel supply chain

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Last updated: July 8th, 2022 at 13:05 UTC+02:00

Samsung Electronics is decreasing LCD TV panel orders from China’s BOE. Some industry watchers believe that the Korean tech giant is deliberately distancing itself from BOE while increasing LCD panel orders from other suppliers, including CSOT, HKC, Sharp, and LG Display.

Market research firm Omdia estimates that BOE’s LCD TV panel share for Samsung Electronics could drop from 13% to 17% this year. This will allow HKC to climb up the ranks and capture 2nd place from BOE, the latter of which might drop to 3rd place this year. (via The Elec)

Is Samsung deliberately cutting ties with China’s BOE?

Interestingly, Samsung Electronics appears to have lowered its LCD TV panel orders primarily for BOE while increasing overall panel orders this year (from all suppliers combined) to 53.8 million.

Aside from BOE, other Samsung LCD panel suppliers, including CSOT, HKC, Sharp, and LG Display, have enjoyed higher panel orders this year. Because of this, market watchers wonder if Samsung wants to lower its dependency on BOE, although it’s not entirely clear why the Korean tech giant would want this.

It’s worth noting that Apple may also cease collaborations with BOE after the panel manufacturer reportedly got caught cheating earlier this year. BOE was facing a low yield for Apple’s OLED panels and tried solving this issue by quietly changing the specifications of Apple’s OLED displays. Apple caught wind of this and immediately halted production.

As for the relationship between Samsung and BOE, the latter should deliver 6.8 million LCD TV panels this year, down from 8 million units last year, and it’s unclear if panel orders will continue to decrease in 2023.

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