Samsung is rumored to have terminated its cooperation with BOE
Samsung has historically collaborated with BOE Technology Group Co., Ltd. (BOE), purchasing various panels for use in its mid-range and low-end television product lines, such as certain LCD panels. However, due to worsening relations over patent issues in recent years, Samsung has gradually reduced its procurement from BOE, shifting LCD panel orders more towards CSOT.
According to a report by Business Korea, Samsung has terminated its medium to long-term partnership with BOE and will no longer procure panels from them, leading to a reconfiguration of its supply chain. The decision comes amidst escalating legal disputes between Samsung and BOE over alleged infringements of display technology, compounded by other factors and increasing uncertainties.
In the first half of this year, BOE accounted for approximately 10% of Samsung’s TV panel procurement, ranking third among suppliers. However, by the third quarter, BOE had fallen out of the top three. Samsung’s third-quarter report excluded BOE from the list of main suppliers for monitors and TV panels, marking the first time this has occurred since the fourth quarter of 2015.
Samsung has filed a lawsuit with the United States International Trade Commission, accusing BOE of infringing upon its commercial secrets related to OLED panel and module technology. Industry insiders anticipate that due to the disputes with BOE, Samsung will strengthen collaborations with other suppliers. LG has recently increased the operational rate of its panel factory in Guangzhou, with projected shipments rising from 9 million units this year to 16 million units next year.