Samsung is reported by the Korea Herald to have agreed to use LCD panels from its rival, LG Display, in its TV business. The discussions have been going on for some time, but the original plan of a volume of 700,000 units (Samsung To Use LG Panels for TVs) is said to have been reduced to 100,000 as the agreement hasn’t been finalised. The discussions were provoked when Foxconn decided that Sharp would not supply LCDs for TVs to Samsung.
Analyst Comment
My own view is that, for 100,000 units, there is little point in Samsung adopting LG panels as it would dilute the messaging that Samsung is able to bring to bear to focus on its VA technology, with a long way less than 0.5% of Samsung’s TV business. Even at the 700K level, it would seem not to be an easy decision. The Herald reported that Samsung has not used panels “manufactured by a rival”, but, arguably, AUO, Sharp and Innolux have all been competitors at some level. However, as far as I know, they haven’t bought from LG Display before.
Of course, LG has also been moving away from LCD, so may not be desparate to sell panels to Samsung. It may be that this whole exercise is being undertaken just to please the government, which, no doubt, would like to keep as much business as possible in Korea. (BR)
