It was reported in June that consumer demand will continue to slow as the global economic situation becomes dire, and geopolitical uncertainty has forced Samsung to adjust. The company also cut orders for TVs and other home appliances, following a 30 million smartphone order cut in 2022. Even so, Samsung continues to push the development of its new TV technology, with news that it has started production of a new 89-inch MicroLED TV, which uses LTPS TFT glass substrates for the first time.
According to The Elec, Samsung is targeting shipments of more than 40 million TVs next year, which is its minimum requirement to cement its leadership in the industry. About 39 million of them are LCD models, while 1.5 million are QD-OLED models, and the plan does not include models that purchase LG’s W-OLED panels. Although the macro economy is facing a downward trend and consumer market demand is weak, Samsung seems to be quite confident, and the shipment plan of OLED-type TVs is also more flexible.
In addition to the panels it manufactures, Samsung
also purchases LCD panels from CSOT, BOE, HKC, LG, and AUO. Among them, CSOT’s supply exceeds 10 million pieces. Since the conflict with BOE in terms of the agreement, Samsung is more inclined to give priority to CSOT.
BOE was once Samsung’s second-largest supplier of LCD TV panels, but supply has declined in recent years. The conflict between the two parties is only one of the reasons. On the other hand, since the outbreak of the COVID-19 epidemic, Samsung has made efforts to diversify its supply chain, which has affected the procurement volume of original suppliers to a certain extent.