Samsung will purchase more than 4 million LCD panels from BOE next year
Samsung is in talks with BOE (China's largest display panel manufacturer) to purchase over 4 million TV liquid crystal display (LCD) panels next year. Since the South Korean tech giant purchases approximately 40 million TV LCD panels annually, this means the Chinese display panel maker will account for 10% of its supply.
Samsung also purchases from other Chinese suppliers and is in talks with them. CSOT is expected to take 9 million units, and HKC 6 million. The high figures for CSOT stem from its acquisition of LG Display's LCD factory in Guangzhou, where Samsung previously sourced its LCD panels.
BOE currently supplies LCD panels to Samsung, but it is one of the smallest suppliers. If it can indeed supply over 4 million units next year, it would effectively replace LG Display in Samsung's TV panel supply chain. BOE previously supplied over 10 million LCD panels to Samsung. However, the South Korean tech giant significantly reduced this volume following a dispute between the two parties over advertising royalties. Sources suggest that BOE's resumption of supply to Samsung suggests they may have resolved the issue. Advertising royalties are the cost of various TV marketing campaigns. They are also known as market-driven funds or market development funds. In 2022, Samsung demanded BOE pay 100 billion won in patent licensing fees, but BOE refused. BOE also filed patent infringement lawsuits against Samsung and Samsung Display in China, further straining their relationship. BOE is expected to supply Samsung with in-line switching LCD panels. CEC will also supply these panels through its Guangzhou fab, resulting in the two Chinese panel manufacturers forming an oligopoly in the Korean company's supply chain. BOE and Samsung held discussions in May to expand their LCD supply. BOE subsequently agreed to supply Samsung with over 20 million LCD panels for TVs between 2026 and 2028. Senior management from both companies met again in July to further discuss the issue.
