South Korean electronics giant Samsung Electronics is severing ties with China’s largest display manufacturer BOE. Samsung’s decision to remove BOE from its supplier list stems from a series of legal battles involving patent infringement and trade secret theft.Ties between Samsung and BOE severed
In recent months, Samsung Display, a subsidiary of Samsung Electronics, filed a complaint with the US International Trade Commission (ITC), accusing BOE of abusing OLED panel and module technology. BOE was a major Liquid Crystal Display (LCD) panel supplier to Samsung Electronics, accounting for approximately 10% of the company’s TV panel purchases in the first half of 2023.
But in the third quarter of the year, BOE was removed from the list of major panel suppliers for Samsung Electronics’ Device Experience (DX) division, marking the first time in nearly seven and a half years that the Chinese company was not listed as a primary supplier. The severing of ties with the BOE is likely to have a significant impact on the Chinese company’s operations. With BOE out of the picture, Samsung Electronics is expected to increase cooperation with other suppliers such as LG Display, Sharp and AUO. In particular, LG Display is expected to increase production at its LCD factory in China and increase shipments from 9 million units in 2023 to 16 million units in 2024.
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