November 22, 2024

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[THE INVESTOR] Samsung Electronics’ first TVs using LCD panels from its crosstown rival LG Display are likely to debut early next year but the total shipment is expected to remain at about 100,000 units, according to JoongAng Ilbo on Nov. 27.

“The talks between Samsung and LG that have continued over the past year are being finalized now,” an unnamed industry source was quoted as saying in the report. “Samsung’s TV sets using LG panels are likely to be launched early next year. The shipment may not exceed 100,000 units.”

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The two Korean tech giants have continued related talks since December last year when Japanese LCD maker Sharp abruptly informed its supply cut to Samsung, the world’s largest TV maker, without clear reasons.

Amid speculations that Sharp’s new owner Foxconn Technology Group of Taiwan was securing more panels for its own TV production, Samsung sought help from other panel suppliers, including LG Display.

It would be a rare tie-up for Samsung and LG that rarely use each other’s parts for their top-selling products as they compete in almost all appliance and component sectors globally.

But their talks have stalled over the past year not just because of their decades-old bitter rivalry but also because they adopted different display manufacturing technologies.

“Samsung needs to adjust its production line for LG panels that use different manufacturing technologies. They have been narrowing differences in the total shipment that is directly linked to production costs,” a source told The Investor on condition of anonymity.

JoongAng Ilbo reported the total shipment would remain at about 100,000 units, which compared to the earlier prediction of some 700,000 units. The report said Samsung could reduce its dependence on LG as LCD shortages have largely eased recently.

Sharp has provided an annual 5 million LCD panels for Samsung, totaling about 10 percent of the Korean firm’s annual TV production. For this year, Samsung had reportedly increased orders to some 6 million units amid its focus on OLED production for smartphones.

Sources say Samsung has filled up the LCD shortage from Chinese display makers, including BOE.

By Lee Ji-yoon (jylee@hearldcorp.com)