Samsung is strategically diversifying its supply chain for large LCD panels for TVs in response to an ongoing patent lawsuit with BOE, China’s largest panel maker, reported Business Korea.
Chinese companies currently supply about 70% of LCD panels for Samsung’s TVs, with TCL CSOT being the largest supplier, followed by HKC and BOE. AUO holds a share of about 20%, while Sharp, LG, and others account for 10%.
Samsung Display filed a lawsuit against BOE with the US International Trade Commission to ban the import and sale of infringing Chinese panels. In retaliation, BOE filed a counter-suit in China, alleging an infringement of LCD panel patents by Samsung. Other Chinese vendors, Tianma, TCL CSOT and Visionox have recently jumped on board BOE’s case against Samsung.
To address the challenges, Samsung is actively looking to strengthen cooperation with Taiwanese and Japanese panel makers and it’s asking AUO and Sharp to expand their supply volumes, as LG Display is currently undergoing restructuring and lacks the capacity to increase its supply. LG Display is instead focusing on partnerships in the next-generation panel market, including supplying OLED panels for Samsung’s large 83-inch OLED TVs.