Samsung and LG, two of South Korea’s leading consumer electronics giants, have long been fierce competitors in the global market. For years, they avoided any collaboration in the electronics sector, maintaining a strict non-supply policy for LCD panels between them. However, this dynamic changed last year when the two companies finally reached a business agreement. LG will now supply Samsung with large-sized LCD panels, marking a significant shift from their traditional rivalry and breaking an unwritten rule that had kept them separate for so long.
This partnership is expected to ease some of the pressure on Samsung's panel supply chain. It has been reported that Samsung's first TVs equipped with LG Display panels could hit the market as early as next year, with an estimated 100,000 units planned for launch. This move not only strengthens Samsung's position in the TV market but also signals a strategic shift in how the company sources its components.
The shortage of LCD panels for Samsung was largely due to Sharp’s decision to stop supplying large-size panels to the company. Samsung had previously relied on Sharp’s 10th-generation line, which accounted for about 10% (4–5 million) of Sharp’s total capacity. After being acquired by Hon Hai, Sharp reorganized and resumed TV production, reactivating multiple lines and increasing output. As a result, Sharp announced it would cease providing large LCD panels to Samsung starting in 2017.
Despite these challenges, Samsung has remained the top-selling TV brand globally for eleven consecutive years. However, the company has recently begun scaling back its LCD panel production, shifting focus toward AMOLED technology. Samsung currently controls 98.5% of the small OLED panel market, a dominant position that is hard to challenge.
In addition to partnering with LG, Samsung has also turned to Chinese manufacturers like BOE, participating in open auctions to purchase liquid crystal panels. The company has even invested in Huaxing Optoelectronics for TV panel production, further diversifying its supply chain.
Samsung is also investing heavily in quantum dot technology for its television lineup. The new Q series QD TVs are already showing impressive display quality. Meanwhile, there are rumors that Samsung may unveil a 150-inch Micro LED TV at the upcoming CES show. Still, many believe the company’s future focus in the TV industry will remain on quantum dots, a technology that promises to shape the next generation of displays.
Shenzhen Priva Tech Co., Ltd. , https://www.privaled.com