Samsung's Video display business (VD) drew attention after slashing TV panel orders in the second quarter and revising its shipment target for this year. Now the industry is spreading news, Samsung notified all business groups of the group to suspend procurement, and required inventory status.
According to industry sources, On June 16, Samsung ordered all business groups to suspend procurement, including panel, mobile phone, memory business group, and report on the purchase inventory status. Therefore, almost all panel manufacturers received the suspension notice from Samsung yesterday (HKC, SIO and BOE received the notice last night).
The suspension applies to all segments of the consumer electronics business, including TVS, PCS and smartphones. Three components are restricted: display, integrated circuit and spare parts (PCBA, power supply, etc.).
As a result, Samsung's INVENTORY of LCD TVS (including wIP and channel inventory) has reached 16 weeks, and that of smartphones has exceeded 12 weeks. The suspension of stock is to review inventory and prevent further loss of inventory depreciation.
The purchase of components and semiconductors for large-size display devices such as TVS will be significantly reduced during this period. Samsung's TV shipment forecast for this year was revised down to 39-40m (from about 55m last year), down to double digits year on year, and it expects the overall TV market to decline to 180-190m in 2022. Therefore, the panel industry pressure in the third quarter or further increase.
Prior to this, Samsung has been reported to cut orders for TV panels in the second quarter, at least 2 to 3 million units, estimated that the third quarter, the fourth quarter market will be "busy season." According to industry sources, Samsung's panel inventory level is now as high as 16 weeks, while the channel inventory level in North America and Europe has also reached a high. Based on the current purchase volume of Samsung, the quantity that cannot be shipped in June due to the current suspension of purchase policy may be at least 2 million tablets
In fact, in addition to Samsung, LG Electronics has already cut orders for TV panels, and China's three panel giants (BOE, Huaxing Optoelectronics and Huiko) are expected to reduce their TV panel production capacity by 15.8 percent in the third quarter compared to the original plan, and by 2 percent compared to the second quarter. The industry is also paying close attention to LG Electronics following Samsung s announcement.
