South Korean electronics giant Samsung Electronics has severed ties with BOE, China’s largest display manufacturer.
Samsung’s decision to exclude BOE from its supplier list stems from a series of patent infringement and trade secret theft allegations.
In recent months, Samsung Display, a subsidiary of Samsung Electronics, has filed complaints with the U.S. International Trade Commission (ITC) accusing BOE of misappropriating its OLED panel and module technology.
BOE has been a major supplier of Liquid Crystal Display (LCD) panels to Samsung Electronics, accounting for around 10% of the company’s TV panel purchases in the first half of 2023.
However, in the third quarter of the year, BOE was excluded from the list of key panel suppliers for Samsung Electronics’ Device Experience (DX) division, marking the first time in nearly seven and a half years that the Chinese company has not been included as a primary supplier.
The severing of ties with BOE is likely to have a significant impact on the Chinese company’s business. BOE had been counting on Samsung as a major customer, and the loss of this contract will likely hurt its bottom line.
With BOE out of the picture, Samsung Electronics is expected to increase its cooperation with other suppliers, including LG Display, Sharp, and AUO.
LG Display, in particular, is anticipated to ramp up production at its Guangzhou, China LCD factory, potentially increasing shipments from 9 million units in 2023 to 16 million units in 2024.
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(Via)
