As per recent data shared by Omdia (a market research firm), the South Korean conglomerate Samsung is becoming more dependent on Chinese LCD manufacturers. Market observers predict that in 2023, the Korean consumer electronics behemoth would continue to be more reliant on Chinese suppliers for its LCD requirements. However, some Chinese providers are gaining market share while others are losing momentum.
As per Omdia data, in 2022 Chinese factories supplied 52% of LCD TV panels to Samsung. For the current fiscal year, the numbers are expected to reach 60%. Samsung is more reliant on CSOT and HKC for the supply of LCD TV panels. In accordance with the supply order, HKC holds a 21% share of LCD panels order whereas CSOT accounts for a 26% share of the order. On the other hand, 11% and 2% share of LCD panel supply are held by BOE and CHOT. BOE’s stake fell from 17% in 2021 to roughly 11% this year, while CSOT and HKC are receiving increasing orders from Samsung.
Samsung Display’s discontinuation of LCD production has prompted a market shift
Market observers claim that Samsung itself is the primary driving force behind this transition in the dominance of other LCD panel suppliers from China or, to be more exact, Samsung Display. Last year, the company’s display unit left the LCD market. The company traded the LCD factory in China to CSOT. Furthermore, the company also sold LCD-related patents to CSOT. For this reason, CSOT gained a competitive advantage over other its competitors.
With the departure of Samsung Display from the LCD panel market the reliance of the company increased on LCD suppliers from beyond Samsung Group. In 202, four companies i.e., CSOT, HKC, BoE, and CHOT held 46% of LCD panel share. Later on, it jumped to 52% and 54% and for the current year, it is expected to reach 60%.
Well, it appears like the Samsung display is not affected by this situation any longer. Since the company has decided to explore more advanced technologies since the company continues to be the top leader in the manufacturing of top-tier panels for Apple and other big companies.
Brian is the news author at Research Snipers which mainly covers Technology News, Microsoft News, Google News, Facebook, Apple, Huawei, Xiaomi, and other tech news.