Samsung cuts ties with the giant screen manufacturer BOE, from China; Here’s why

Samsung has decided to cut ties with BOE, a Chinese company and more importantly, one of the largest screen manufacturers in the world. It is certainly the largest in China and operates on the TV and smartphone markets as well. You can find the reason for the decision below.

Samsung has decided to exclude BOE from the list of suppliers after a series of accusations of patent infringement and theft of industrial secrets. Samsung Display, a branch of Samsung Electronics filed complaints with the ITC (International Trade Commission), accusing the BOE of illegally using technology associated with its OLED panels and modules.

BOE is a huge supplier of LCD panels to Samsung Electronics, accounting for around 10% of the company’s TV panel purchases in the first half of 2023. In the third quarter, BOE was dropped from the Samsung Electronics Device Experience supplier list, being for the first time in almost 7 and a half years when a Chinese company was not included as a main supplier.

BOE will seriously suffer, relying heavily on Samsung as a core customer. In addition, he also had the opportunity to work with Apple but failed due to the problems of efficient mass production. Now Samsung will have to replace BOE with LG Display, Sharp and AUO. LG Display has already started ramping up production, and its LCD factory in China is working on automatic fire.

Deliveries will increase from 9 million to 16 million units in 2023.