Sharp off, LGD also hard support
In April 2014, the Hon Hai Group officially acquired Sharp, Sharp incorporated into the Hon Hai Group, made significant changes through the Tigers program.However, for Samsung, this is not a deserved pleasure.According to Sina reported that Gou Sharp and Foxconn in charge from the beginning of last year no longer provide large-size Samsung LCD panel.
It has been reported that before the acquisition of Sharp, half of the annual production of LCD TV panels are supplied to Samsung, was acquired, suddenly cut off the supply of Samsung Caught off guard, Samsung had to seek help from South Korea's largest rival LGD.
It is reported that Sharp unilaterally cut off the supply of 700,000 or so, and LGD Samsung can only supply 100,000 or less LCD panels, a huge gap in demand makes LGD somewhat powerless.
LGD as the world's largest LCD panel makers, why not enough for Samsung's panel gap enough? In nail technology, there are two main reasons:
First, panel prices led to insufficient shipments led to the overall panel supply in the second half of this year to reduce the reason is that LCD panel prices down.According to Witsview analysis, the average price of LCD panels dropped from 203 US dollars in early January this year to the end of November $ 169.
Second, LG may not be able to fully help Samsung this strong competitor.On the one hand, LG and Samsung in the television, mobile phones, panels and other fields are directly competitive relationship; the other hand, in the next generation of television technology, LG and Samsung Betting OLED and quantum dots, the conflict can not be reconciliation for a moment.In such circumstances, LG may not really help Samsung spent a panel shortage shortage.
In summary, Sharp's off, resulting in a huge gap in the Samsung panel, and LGD is also lacking in ability and therefore Samsung is urgently looking for suppliers with sufficient production capacity to provide panels.
Samsung or help in the BOE
According to South Korea's Samsung Electronics Minister said the panel supply increased in the second half of this year, Sharp suddenly cut off the panel supply, Samsung can also get goods from manufacturers such as BOE Technology Group Co., Ltd. mainland China In the nail technology, Samsung wants to get goods to the BOE , There are three reasons.
First, Samsung's own production capacity is insufficient.
Sharp suddenly cut off, so that Samsung in a passive situation, had to seek help to their Samsung Display However, in recent years, Samsung Display to develop small-size OLED screen, a substantial reduction in LCD panel production line, so there is no spare capacity to stabilize the supply of LCD panels.In addition, In addition to low-end LCD TV panels, Samsung Electronics will also use liquid crystal panels QDED QDED television, so the need for quality recognized by the stable LCD panel suppliers.
Second, LGD can not make up for the gap.
From the current situation, LGD is difficult to substantially increase the LCD panel production line.It is reported that LGD production of TV panels with liquid crystal panel Paju in the third quarter of this year, capacity utilization rate reached 100%, the production line has been saturated in this saturation State, LGD not only for their own and have reached agreement on the supply of color TV manufacturers to provide panels, but also for the Samsung to provide an additional 100,000 panels, the big difficulty can be imagined for the 700,000 Samsung panel gap , LGD fear more than enough.
Third, the BOE capacity is sufficient, has become the largest supplier of large-size panels.
As of 2016, BOE market share in the number of LCD applications in the world ranks first I. BOE now has four large-size 8.5 on behalf of the line, three small-size panel production line, a LTPS production line, and the new Hefei The 10.5-generation line will also be mass-produced before the end of the year, with a number of high-generation lines being full-production and full-capacity, strong capacity release and continuous improvement of large-scale production capacity, leading BOE to become the largest supplier of large-size panels in the third quarter of this year.
According to data released by IHS Markit, BOE has become the first global market leader in large-size panels (9-inch and above tablet PCs, notebooks, monitors and TVs) for the first quarter in the third quarter of 2017 with a 21.7% market share Therefore, the growing market position, Samsung is also considered one of the factors in cooperation with the BOE.
In summary, the color TV industry, Samsung's industrial chain advantage is no longer as obvious as before, with the intensified market competition and BOE, Huaxing Power and other enterprises rise, China's color TV industry in the new round of industrial upgrading or more In a favorable position, China's color TV brands can also launch a more powerful impact on Samsung and LG in the global market.