Don't agree with the root brother! Samsung LGD supply plan or abortion

September 11, 2022

According to Korean media reports, LG Display originally planned to provide LCD panels for Samsung's electronic television since July, but the two parties have not yet signed a contract. According to industry sources, Samsung and LGD originally planned to negotiate the supply and type of TV LCD panels by the end of March and early April, and sign contracts, but the two companies have yet to reach a consensus.

Samsung LGD LCD panel supply plan or abortion
Sharp suddenly notified Samsung at the end of last year that it would stop supplying 4.5 million TV LCD panels, causing Samsung to start worrying about the supply and demand of components, so it turned to LGD for help. Once the two parties signed the contract, LGD will supply Samsung with 700,000 to 1 million LCD panels starting from July.
According to industry sources, since Samsung currently uses panels from other vendors, it is imperative to adopt LGD panels to change product specifications, but Samsung has not yet confirmed any details to LGD, including resolution, power consumption, and driving. Chips and so on. Samsung executives are still debating whether to sign a supply contract with LGD. LGD is also skeptical about the supply of Samsung panels, as the demand for large LCD panels is now booming. If LGD supplies panels according to Samsung's specifications, the cost burden may increase.

Samsung insists on signing legally binding supply contracts
In addition, there is another decisive point of disagreement between the two companies in the negotiations, that is, Samsung insisted that it must sign a legally binding supply contract, but LGD believes that the signing of the MOU is sufficient. If both parties still hold their own opinions, LGD will not be able to supply LCD panels to Samsung in July. Even if they negotiate and negotiate at the fastest speed, they will have to provide Samsung panels as soon as September. However, Samsung will not be able to keep up. The United States launches its products before the most important year-end shopping season every year. Industry sources said that as a result, LGD's supply contract does not have any real significance for Samsung.
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