Chinese display manufacturer BOE is being pushed out of Samsung’s supply chain for LCD TV panels. This year, the corporation increased overall orders while decreasing orders to the Chinese supplier. According to reports, it is pulling away from BOE following a breakdown in negotiations about royalties.
BOE Loses Samsung’s Orders for LCD TV Panels One of the main suppliers of LCD TV panels to Samsung has been BOE. As the largest TV manufacturer in the world, the Korean company gave it a lot of exposure. BOE used Samsung’s brand and global reach for marketing purposes. The latter expects to get royalties for the use of its picture from the former.
Since early this year, the two businesses have been discussing the royalty arrangement. However, they were unable to come to terms. It’s not clear whether they couldn’t agree on a framework or whether BOE outright refused to pay royalties. In any case, Samsung is now taking offense by removing BOE from its supply chain.
Advertisement Samsung is reportedly reducing BOEs share in its LCD TV portfolio from 17 percent last year to approximately 13 percent this year, according to research firm Omdia (via The Elec ). This is happening as the company’s entire order volume rises by over 13 percent, from 47.8 million units in the previous year to 53.8 million units this year. Other Samsung suppliers including CSOT, HKC, Sharp, and LG Display stand to gain significantly as a result of BOEs loss.
With its share rising from 20% to 21%, CSOT continues to be Samsung’s top supplier of LCD TV panels. After a significant change in order share, from 15% to 20%, HKC overtook BOE in second place.
It is important to note that BOE was recently discovered altering the display specifications for Apple’s iPhone 14 series without authorization. 30 million OLED displays for the iPhone 14 and iPhone 14 Pro Max had been ordered by a Chinese company. However, it was having trouble with poor yield and surreptitiously modified the display’s specifications without telling Apple.
Advertisement But Apple discovered the alterations and immediately gave BOE the go-ahead to stop production. Samsung Display and LG Display may now be the company’s sources for the screens for the whole iPhone 14 lineup.
Samsung’s LCD TV market share for displays is declining. Samsung has placed orders for LCD TV panels with several companies, including BOE. Samsung Display, the sister company of the Korean corporation, has seen a decline in orders from 6.9 million units last year to 4.3 million this year. But a completely other factor is to blame for this reduction. Samsung Display is gradually transitioning to QD-OLED panels while reducing its TV LCD business. It intends to immediately halt all LCD production.