Samsung reduces TV panel purchases from BOE

Because the licensing fee has not been negotiated, Samsung will reduce the purchase of panels from BOE. The Elec reported that Samsung had previously asked BOE to pay 100 billion won for licensing fees because BOE promoted it as Samsung’s LCD panel supplier. Sources said that BOE refused to pay, and Samsung therefore decided to reduce the purchase of panels from BOE. It is reported that the two had negotiated the licensing fee in the first half of this year, but the negotiation finally broke down.

In the TV industry, final makers such as Samsung and panel suppliers such as BOE use a variety of methods to try and decide who pays for the cost of sales, sources said. For example, if Samsung decides to bear the cost of selling TVs on a certain channel, then they can use this to lower prices to panel suppliers. On the contrary, if the panel manufacturer decides to bear this part, then the price of the panel can be maintained by the manufacturer. And Samsung’s move to ask for licensing fees this time may be to reduce costs.
On the other hand, Samsung has indicated to its panel suppliers that it will not purchase additional display panel orders until the end of this year due to the global economic downturn and the decline in TV sales caused by the geopolitical situation. It is unknown whether this will have any impact on TCL’s bid for more TV orders from Samsung for its subsidiary CSOT next week. But considering that Samsung has left the LCD panel business, and now it is reducing the purchase of panels from BOE, this may be a good opportunity for CSOT.