Jenith
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BOE is one of China's top display manufacturers and has emerged as a rival to Samsung in the OLED segment. Its rise hasn't gone unnoticed, as Samsung has sued BOE several times on claims over patent infringement and even shady business practices.
However, such is the nature of business, Samsung also continues to procure LCD panels from BOE as it no longer makes them. A new report indicates that Samsung may soon sign a major deal with BOE for LCD supply.
Korean media is reporting that top executives from BOE will visit Samsung's TV division in South Korea soon. This would be their second meeting following one back in May. BOE reportedly offered to supply Samsung with over 20 million LCD panels for three years and also share in the cost of TV marketing.
Samsung Display ceased LCD production in 2022 so the TV business now has to buy them elsewhere. It has been sourcing them from CSOT and LG Display in addition to BOE. Since LG Display sold its Guangzhou LCD factory to CSOT, Samsung's reliance on the Chinese manufacturer has increase above its internal policy of not pushing sourcing volume from a single vendor above 30 – 35%.
BOE was the second largest LCD supplier to Samsung in 2021 but the Korean giant reduced its procurement after disputes with the company. There's now renewed engagement between the two companies as Samsung needs to diversify its LCD supply chain. Samsung typically procures 40 million LCD panels per year and BOE will be able to adequately meet its demand.
Since new TV products are developed in the third quarter of the year before they're launched early the following year, if a deal is to materialize, Samsung and BOE may soon sign on the dotted line to get the ball rolling.
The post Samsung may sign major deal with a Chinese company it keeps suing appeared first on imeisource.
However, such is the nature of business, Samsung also continues to procure LCD panels from BOE as it no longer makes them. A new report indicates that Samsung may soon sign a major deal with BOE for LCD supply.
BOE could help Samsung diversify its LCD supply chain
Korean media is reporting that top executives from BOE will visit Samsung's TV division in South Korea soon. This would be their second meeting following one back in May. BOE reportedly offered to supply Samsung with over 20 million LCD panels for three years and also share in the cost of TV marketing.
Samsung Display ceased LCD production in 2022 so the TV business now has to buy them elsewhere. It has been sourcing them from CSOT and LG Display in addition to BOE. Since LG Display sold its Guangzhou LCD factory to CSOT, Samsung's reliance on the Chinese manufacturer has increase above its internal policy of not pushing sourcing volume from a single vendor above 30 – 35%.
BOE was the second largest LCD supplier to Samsung in 2021 but the Korean giant reduced its procurement after disputes with the company. There's now renewed engagement between the two companies as Samsung needs to diversify its LCD supply chain. Samsung typically procures 40 million LCD panels per year and BOE will be able to adequately meet its demand.
Since new TV products are developed in the third quarter of the year before they're launched early the following year, if a deal is to materialize, Samsung and BOE may soon sign on the dotted line to get the ball rolling.
The post Samsung may sign major deal with a Chinese company it keeps suing appeared first on imeisource.