In response to Sino-US tensions and ongoing patent battles, Samsung Electronics is reportedly shivering its cooperation with China’s top display manufacturer, BOE, and reorganizing its supply chain, as per a recent story published in the South Korean media outlet BusinessKorea. The BOE’s most recent reaction to this issue was described as a report taken out of context based on false information that was refuted. The recent rumors regarding BOE and Samsung working together were reportedly stories that were taken out of context by Korean media based on fake information, as per the report from the source, The Paper, who replied exclusively to this today.
Following the existing strategy, the supply of BOE and worldwide brand partners is continuing to proceed in a systematic manner. Industry sources stated on the 15th that BOE reduced its market share and was no longer among Samsung Electronics’ top three TV panel suppliers in the third quarter. BOE, a significant provider of liquid crystal display (LCD) panels, ranked third among the top panel vendors and supplied around 10% of Samsung Electronics in the first quarter of the year. Due to its deliberate exit from the LCD panel market, mainland China now accounts for the majority of Samsung Electronics’ LCD panel acquisitions.
According to data made available by the Korean Financial Supervisory Service early in September via its electronic disclosure system, Samsung Electronics paid Chinese companies a total of 1.9521 trillion won in the first quarter of this year for LCD panels for TVs and monitors. For the first time since over seven and a half years ago, during the fourth quarter of 2015, BOE has not been included as a major panel provider for devices, TVs, and smartphones. It is reported that BOE, a significant rival in the worldwide display market, and Samsung Electronics intend to end their medium- to long-term partnership.
Allegations of patent infringement and trade secret violations have landed BOE and Samsung Display, a subsidiary of Samsung Electronics, in court. Samsung Display claimed in a recent complaint to the U.S. International Trade Commission that BOE had violated its trade secret concerning OLED panel and module technology. Analysts predict that Samsung Electronics will work more closely with other suppliers, such as Taiwan’s AUO, Japan’s Sharp, and LG Display’s dispute with BOE.
Chinese manufacturers will provide 52% of Samsung LCD TV panels in 2022, and this percentage will rise to 60% this year, states market research company Omdia. Samsung’s tough competitors in the LED panel industry include BOE’s clients Honour, OPPO, Vivo, and other top-tier local and international mobile businesses.
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