According to the latest reports, both BOE and HKC got pushed further away from Samsung’s LCD TV panel supply chain for similar reasons. Specifically, neither one of the two Chinese suppliers wants to pay advertising royalties.
Initially, word was that Samsung decided to acquire fewer LCD TV panels from BOE as a response to failed negotiations. Now, it turns out that Samsung also pushed BOE further down its supply chain by limiting it to supplying panels for low-to-mid-range TVs. So, not only is BOE shipping fewer panels but the supplier also got downgraded to offering lower-cost components.
More so, Samsung has reportedly applied a similar strategy for HKC. The supplier’s share has declined, much like BOE’s, and HKC’s role is now limited to supplying components for lower-cost TVs. (via The Elec)
Other Samsung LCD TV panel suppliers are winning
Other TV panel suppliers are gaining more market share on the back of BEO and HKC failing to reach an agreement with Samsung Electronics.
The Korean tech giant has now increased its reliance on China’s CSOT, Taiwan’s AUO, Japan’s Sharp, and Korea’s LG Display. These suppliers are enjoying orders for high-end TV models.
CSOT’s share in Samsung’s LCD TV panel supply chain could increase from 20% to 21% this year. Sharp should also gain 1%, and LG Display’s share could increase from 2% in 2021 to 7%.
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