LG plans to provide LCD panel to Samsung further delayed
- May 17, 2018 -

As early as 2016, when Foxconn subsidiary Sharp suddenly announced that it would stop supplying products to Samsung, the world’s largest TV maker (Samsung) began to seek help from other suppliers, including rival LG Display. In the absence of a global LCD monitor, this rare partnership between the two Korean companies has been talked about by the industry.

After months of negotiations, LG provided Samsung with 40,000-50,000 LCD panels for testing last year. LG plans to provide about 1.52 million panels to rival Samsung. Because they use different panel production technologies, Samsung has since adjusted its production process to achieve full adoption. However, sources said that the test takes too long.

An industry source who declined to be named said: “The final agreement has not yet been signed. The reason for the delay in this transaction is not the above test, but other factors including supply and price.” In addition, the source also Samsung pointed out that Samsung originally planned to use LG panels for its 65- and 75-inch TVs this year.

In the past year, the market situation has undergone tremendous changes. While China's panel makers expanded their production lines, Samsung also quickly stabilized its supply chain. When the market is oversupply, the high-priced LG panels may become less attractive to Samsung.

According to relevant data, the price of 65-inch LCD panels fell by 13-14% in the first quarter of 2018 and is expected to continue to decline by 14-16% in the second quarter.

The above sources revealed: "The two companies may not cancel the well-known transaction, but will compromise on detailed trading conditions so as not to adversely affect both parties."

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