Samsung and LGD have reached a cooperation, the latter will provide TFT-LCD panels for the former to make up for the lack of supply panels due to Sharp, which is the first time in two South Korean giants to achieve cooperation on the TFT-LCD panel for both parties. It is a mutually beneficial and win-win cooperation.
Samsung is very important to panel companies According to IHS's estimation last year, the world’s top three television brands ranked Samsung, LG, and Hisense respectively. It is estimated that Samsung’s shipments are 1.69 times and 3.2 times that of LG and Hisense, respectively, showing that Samsung is the largest in the world. The TV brand status is very solid.
Samsung is well-known for its strong industrial chain. As the world's largest television company, it began to layout LCD panels as early as the 1990s, and by the end of the 1990s it had become the world's largest LCD panel manufacturer. In the late 2000s, due to fierce competition in the LCD panel industry, Samsung began to focus on AMOLED panels instead of traditional TFT-LCDs. By 2013, LG surpassed Samsung as the world's largest LCD panel supplier.
With the maturity of AMOLED panel technology and Samsung's capacity and technical advantages in this field, Samsung has over 90% of its market share in small and medium sized AMOLED panels. Last year, it obtained an order for AMOLED panel from Apple to supply 1 this year. Billion, it will be more TFT-LCD panel production line or sold or modified, its TFT-LCD panel production capacity gradually reduced.
Today, Samsung’s TFT-LCD panels are mainly purchased from outside. Natural importance to the global TFT-LCD panel companies is natural. The suppliers include China’s BOE and Huaxing Optoelectronics. Before Sharp’s cooperation with LGD, Sharp is also One of the TFT-LCD panel suppliers, the two South Korean giants are finally working together because Sharp stopped supplying TFT-LCD panels.
The Importance of TFT-LCD Business to LGD LGD also recognizes the low profitability of conventional TFT-LCD panels and the adverse impact of rising costs. In recent years, it has also invested heavily in large-size OLED panels, and has become a capacity and technology in this area. Leading company.
However, LGD's OLED panel business has so far been in a loss state, and at the same time it needs to continue to invest in expanding production capacity and conducting technological research and development in order to maintain its leading edge, which requires the support of its TFT-LCD panel business to provide financial support.
LGD's parent company, LG, is also operating a TV brand business, but from the above it can be seen that its TV brand shipments are only about 60% of Samsung, which is not enough to consume LGD's TFT-LCD panel production capacity. These TFT-LCD panel production capacities Need to export.
Cooperation between Samsung and LGD can compete against the competition of Chinese companies. Although Samsung has fierce competition with LG in TV business, it has formed a stable position for one or two years. However, the common opponents facing them now are Chinese enterprises. According to IHS data, 5 of the top 10 TV brand companies are from China. They are rapidly catching up with Samsung and LG. It is more important for the two Korean companies to respond to the competition of Chinese TV brand companies.
In terms of panels, the production capacity of TFT-LCD panels, such as China's rising BOE and China Star Optoelectronics, is also rapidly rising, threatening the position of LGD's first brother. Samsung, one of the major customers of these two Chinese panel companies.
Under such circumstances, LGD's cooperation with Samsung is at least temporarily beneficial to both parties, and it can jointly compete against Chinese TV brands and panel companies. The position of Samsung and LG in the TV brand market has been stable for many years. Continued fierce competition will only give Chinese TV brands an opportunity.
In terms of TFT-LCD panel, Samsung needs to increase one supplier to avoid being restricted by Chinese panel companies because of the current capacity constraints, and LGD can therefore obtain a large customer to find exports for its own capacity, after all, with the panel production capacity in China. There will always be a surplus of TFT-LCD panel production capacity after the expansion of the technology.
Of course, after this stage, the competition between Samsung and LGD will inevitably intensify once again. The former is planning to invest heavily in large-scale OLED panels and the latter will face positive competition. It will be the future for both parties to cooperate or compete.
Samsung is very important to panel companies According to IHS's estimation last year, the world’s top three television brands ranked Samsung, LG, and Hisense respectively. It is estimated that Samsung’s shipments are 1.69 times and 3.2 times that of LG and Hisense, respectively, showing that Samsung is the largest in the world. The TV brand status is very solid.
Samsung is well-known for its strong industrial chain. As the world's largest television company, it began to layout LCD panels as early as the 1990s, and by the end of the 1990s it had become the world's largest LCD panel manufacturer. In the late 2000s, due to fierce competition in the LCD panel industry, Samsung began to focus on AMOLED panels instead of traditional TFT-LCDs. By 2013, LG surpassed Samsung as the world's largest LCD panel supplier.
With the maturity of AMOLED panel technology and Samsung's capacity and technical advantages in this field, Samsung has over 90% of its market share in small and medium sized AMOLED panels. Last year, it obtained an order for AMOLED panel from Apple to supply 1 this year. Billion, it will be more TFT-LCD panel production line or sold or modified, its TFT-LCD panel production capacity gradually reduced.
Today, Samsung’s TFT-LCD panels are mainly purchased from outside. Natural importance to the global TFT-LCD panel companies is natural. The suppliers include China’s BOE and Huaxing Optoelectronics. Before Sharp’s cooperation with LGD, Sharp is also One of the TFT-LCD panel suppliers, the two South Korean giants are finally working together because Sharp stopped supplying TFT-LCD panels.
The Importance of TFT-LCD Business to LGD LGD also recognizes the low profitability of conventional TFT-LCD panels and the adverse impact of rising costs. In recent years, it has also invested heavily in large-size OLED panels, and has become a capacity and technology in this area. Leading company.
However, LGD's OLED panel business has so far been in a loss state, and at the same time it needs to continue to invest in expanding production capacity and conducting technological research and development in order to maintain its leading edge, which requires the support of its TFT-LCD panel business to provide financial support.
LGD's parent company, LG, is also operating a TV brand business, but from the above it can be seen that its TV brand shipments are only about 60% of Samsung, which is not enough to consume LGD's TFT-LCD panel production capacity. These TFT-LCD panel production capacities Need to export.
Cooperation between Samsung and LGD can compete against the competition of Chinese companies. Although Samsung has fierce competition with LG in TV business, it has formed a stable position for one or two years. However, the common opponents facing them now are Chinese enterprises. According to IHS data, 5 of the top 10 TV brand companies are from China. They are rapidly catching up with Samsung and LG. It is more important for the two Korean companies to respond to the competition of Chinese TV brand companies.
In terms of panels, the production capacity of TFT-LCD panels, such as China's rising BOE and China Star Optoelectronics, is also rapidly rising, threatening the position of LGD's first brother. Samsung, one of the major customers of these two Chinese panel companies.
Under such circumstances, LGD's cooperation with Samsung is at least temporarily beneficial to both parties, and it can jointly compete against Chinese TV brands and panel companies. The position of Samsung and LG in the TV brand market has been stable for many years. Continued fierce competition will only give Chinese TV brands an opportunity.
In terms of TFT-LCD panel, Samsung needs to increase one supplier to avoid being restricted by Chinese panel companies because of the current capacity constraints, and LGD can therefore obtain a large customer to find exports for its own capacity, after all, with the panel production capacity in China. There will always be a surplus of TFT-LCD panel production capacity after the expansion of the technology.
Of course, after this stage, the competition between Samsung and LGD will inevitably intensify once again. The former is planning to invest heavily in large-scale OLED panels and the latter will face positive competition. It will be the future for both parties to cooperate or compete.
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