The report pointed out that in 2016, when the Hon Hai Group took over the Japanese panel maker Sharp (SHARP), it suddenly announced that when it stopped supplying Samsung products, the world’s largest TV manufacturer began to seek help from other suppliers. One of them was competitor LG Display. At the time, there was a shortage of global LCD panels. The two Korean companies reached a rare partnership and were once passed on to the industry.
After several months of negotiation, LG provided Samsung with 40,000 to 50,000 LCD panels for testing in 2017. Later, LG originally planned to provide Samsung with approximately 1.52 million LCD panels. However, since the two companies used different production technologies, Samsung began The production line was adjusted to fully receive the LG LCD panel, but according to industry sources, the test time was obviously too long.
The report quoted sources as saying that although Samsung's testing time was too long and eventually there was no other supplier to provide LCD panels, Samsung was still willing to purchase from LG, but the real reason for the final purchase plan was actually Supply chain and final transaction price. In the past year, the LCD panel market has undergone tremendous changes. Chinese panel makers have expanded their production lines. Samsung has also rapidly stabilized the supply chain. As the market gradually shifts from supply shortage to oversupply, LG insists on high panel prices. The price is not so attractive to Samsung.
According to market survey agencies, in the first quarter of 2018, the price of 65-inch LCD panels fell by an average of 13% to 14% from the previous quarter. By the second quarter, panel prices are expected to continue to decline by 14% to 16%. Saying that the urgency of the LCD panel has been lost has delayed the entire plan by one year. However, sources revealed that Samsung and LG should not cancel this well-known transaction, but will compromise on the final detailed trading conditions so as not to adversely affect both parties. .