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LG Display may become supplier to Samsung
By time : 2017/3/13    Clicks : 979    Public:Shenzhen Vitek Electronics Co., Ltd.

LG Display may begin supplying LCD TV panels to Samsung Electronics in the second half of 2017 amid ongoing tight supply in the large-size TV panel industry.

The Korea Herald is reporting that LG Display has recently received increased inquiries for TV panels from Samsung and LG Display CEO Han Sang-beom has implied that LG could become a possible supplier for Samsung early in the second half of the year, although the CEO added that nothing was set in stone.

LCD TV makers have faced tight panel supply since the second half of 2016, with panels prices jumping more than 50% in some segments, according to Digitimes Research. At the end of 2016, large-size panel maker Samsung Display also started shifting a significant portion of its L7-1 LCD production line to AMOLED panel production line for producing smartphone panels and Foxconn decided to not have Sharp provide TV panels to the Korean vendor.

The increase in panel pricing has cut into margins for TV vendors, which are now reevaluating their supply strategies. Over the past few years, major vendors including Samsung, LG and Sharp have diversified their supply chain to increase the proportion of panel makers from Taiwan and China in order to cut down on average costs and offer more competitive pricing, market research firm IHS recently noted.

These vendors are now returning to securing an increased portion of supply from their captive panel makers in order to ensure supply. Samsung Electronics, LG Electronics, TCL and Sharp, are all forecast to sharply increase orders from their respective panel suppliers, Samsung Display, LG Display, China Star and Sharp (Foxconn) to 41% of all total orders in 2017, up from 34% in 2016, IHS said.

Above all else, top TV makers are concerned about securing stable panel supply in 2017, IHS stated. Sharp is expected to increase its orders the most from its captive panel supplier among all other TV makers from 36% in 2016 to 93% in 2017. Similarly, Samsung is also forecast to expand its panel purchases from its main supplier, Samsung Display, from 32% in 2016 to 39% in 2017, but the increase in orders could be constrained due to the panel maker's planned cut in its TV panel capacity in 2017, IHS noted.

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