LCD Panel Supply Chain Shifts Coming in 2024 as Samsung and LG Look to Reduce Reliance on Chinese Suppliers

According to reports out of Korea, Samsung and LG are expected to make significant changes to their liquid crystal display (LCD) TV panel supply chain starting in 2024. The two Korean electronics giants plan to increase purchases from Taiwanese, Japanese and Korean panel makers while decreasing reliance on major Chinese suppliers BOE, TCL CSOT and HKC.

The proportion of LCD panels Samsung and LG source from LG Display is forecasted to double from 8% in 2023 to 16% in 2024. LG Display plans to boost LCD TV panel production capacity at its factory in Guangzhou, China from 8 million units this year to 15 million units in 2024, according to local Omdia analysis. This comes as Samsung Display exited the LCD panel business at the end of 2021 and as LG Display has been reducing its own LCD TV panel production.

For Samsung and LG’s LCD panel supply in 2024, Omdia predicts declines in market share for Chinese makers BOE (from 22% to 15%), CSOT (21% to 20%) and HKC (22% to 18%). Meanwhile, Taiwanese companies Innolux (from 8% to 11%) and AUO (8% to 9%) are forecast to increase share. Japan’s Sharp, acquired by Taiwan’s Foxconn, is also expected to grow from 10% currently to 13% in 2024.

The shifts reflect moves by Samsung and LG to diversify their supply chain for larger screen LCD TV panels, categories which are dominated by Chinese manufacturers. Chinese companies supply over 70% of 43- to 55-inch panels and upwards of 65% of panels 65-inches and larger.

Additionally, The Elec is reporting Samsung has also requested 2.5 million WOLED TV panels from LG Display for 2023 as demand has been weaker than expected for its QD-OLED TVs which use panels from Samsung Display. Samsung aims to ship around 2 million OLED TVs next year as part of its 4 to 4.5 million unit premium TV lineup.

The shifts reflect ongoing changes in the global TV panel supply chain as new technologies like OLED and mini-LED displace LCD. They also show the bargaining power of major TV brands like Samsung and LG as they look to diversify suppliers and maintain leverage in price negotiations.