As we all know, Samsung and LG Electronics' subsidiaries have always been incompatible, but now Samsung has to negotiate with competitors about the supply of LCD panels. It is reported that the main reason behind this is that Sharp suddenly cut off the supply of Samsung panels at the end of last year. .
According to reports, due to the impact of Sharp's one-sided cut on the supply of Samsung panels, Samsung had to switch to the panel of competitor LG. It is estimated that Samsung TVs using LG panels will be available as early as early next year. Some analysts said that although the transaction volume is only 100,000 units, it is of great significance to share customers with core components.
On November 26th, an industry-related person who asked for anonymity said, 'Samsung Electronics and the company have been negotiating the supply of LCD TVs for TV. It has been going on for more than a year since December last year and is now in the final stage. . As early as early next year, the LCD panel for TVs supplied by LG TV will be installed on Samsung Electronics' TV. The relevant person said that 'the specific supply is being negotiated, but it will not exceed 100,000 units'.
Samsung Electronics has been competing with LG in the global TV market. If the two sides reach a consultation, this will be the first case of LG Electronics' supply of LCD panels to Samsung Electronics. For LG Electronics' OLED TV, Samsung Electronics said this year that 'If you use it for a long time, there will be a problem of burn-in on the screen, and you will fight psychologically with LG. In particular, Samsung and LG's TVs have been in constant contradiction since 2013, including the launch of a theory on OLED technology leakage and a lawsuit against LCD TV patent infringement.
Even so, South Korea's Samsung Electronics decided to accept LCD panel supply from its 'Competitor' LG Electronics subsidiary. This is mainly because the Japanese Sharp, which has been supplying LCD panels to Samsung Electronics, suddenly cut off its supply at the end of last year. The chairman of Hon Hai Group, Guo Taiming, 'anti-Korean' and 'anti-Samsung' tend to be obvious. When the acquisition of Sharp, 'unilaterally announced' will cut off the supply of LCD panels to Samsung Electronics. Samsung Electronics' TV core components - the liquid crystal panel part of the supply pipeline was suddenly cut off, so I had to urgently ask LG TV for help. Although Samsung Electronics has also set up a subsidiary, Samsung TV, to produce panels, Samsung TV mainly produces small and medium-sized panels for smart phones, so there is no room for stable supply of LCD panels. According to relevant people in the Korean TV industry, 'In addition to low-end and mid-range LCD panel TVs, Samsung Electronics will also use LCD panels for quantum dot QLED TVs, so it needs a stable LCD panel supplier with acceptable quality.'
At first, the market predicted that LG TV would provide 700,000 LCD panels. Because Sharp unilaterally cut off the supply of goods is about 700,000 units. However, it is estimated that the LCD panel supplied by LG TV to Samsung Electronics should be within 100,000 units. The decrease in supply is due to the increase in the supply of LCD TV panels and the lower prices since the second half of this year. According to market research firm Witsview, the average price of LCD panel TV panels dropped from $203 in early January to $169 at the end of November. South Korea’s Samsung Electronics Minister Li Junxi explained that 'the supply of panels in the second half of this year will increase, and Sharp’s LCD panel products will be cut off. We can also get goods from mainland Chinese manufacturers such as BOE.'
From the current situation, it is difficult for LG TV to significantly increase the production of LCD panels. The LG TV's Paju plant, which produces LCD panels for TVs, achieved 100% capacity utilization in the third quarter of this year, and the production line is already saturated.
In addition, some analysts said that although the global LCD panel supply is gradually improving, Samsung Electronics still wants to supply LG TV as much as possible because of the trading relationship after next year. If you want to achieve 'wide viewing angle' or 'improve pixels', you need to improve the 'adjustable brightness' technology. For the quality requirements of Samsung Electronics, the differences between the two companies have gradually narrowed, so it is possible to negotiate the annual supply required in the future.
Experts expect that TV demand will continue to increase next year. Conversely, the price of LCD panels is expected to rise again. In other words, next year is an important period for Samsung Electronics to ensure a stable LCD panel supplier.
Zheng Yuanshuo, a researcher at Hi Investment Securities in South Korea, stressed that 'from 2012, LCD TV demand will increase every "even years", especially next year, the PyeongChang Winter Olympics and the Russian World Cup will be held. If TV demand is significantly restored next year, as medium and large LCD panels are in short supply, the downward trend in panel prices from the second half of this year may slow down.
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