Samsung Electronics has parted ways from major display panel supplier BOE. Notably, it had provided 10% of Samsung’s TV panels in the first quarter of 2023. However, in the third quarter of the same year, Samsung’s Device eXperience (DX) division decided to exclude BOE from its supply chain for both TV and monitor panels.
The decision to part ways with BOE is believed to be a mid-to-long-term strategy plan to cut all ties eventually. Samsung’s decision has already hurt BOE, with the company’s market share declining in the third quarter. Notably, BOE announced powering up the OnePlus 12 and the OnePlus Ace 2 in its homeland.
Samsung vs. BOE isn’t a mere coincidence, there’s a backstory to it
Samsung Display and BOE, two key players in the global display sector, are fighting a bitter legal battle. The former alleges that BOE has stolen its trade secrets related to OLED panels and modules. The dispute, filed on October 31st, has already reached the chambers of the U.S. International Trade Commission (ITC).
Meanwhile, BOE refuses Samsung Display’s allegations. It insists that OLED technology has been independently developed. However, Samsung Display says that BOE has accessed its trade secrets through illicit means.
The ITC is currently investigating Samsung Display’s complaint. If the ITC finds that BOE has indeed infringed on Samsung Display’s patents, it could issue an exclusion order barring BOE from importing and selling its OLED products in the U.S. This would be a major blow to BOE, which is a major supplier of OLED panels to phone makers.
Moreover, a Business Korea report cites industry experts saying that Samsung Electronics is reportedly expanding its supply chain to include other suppliers. It includes LG Display, Sharp, and AUO. All in all, the situation is worsening for BOE. Samsung Electronics has already excluded it from the list of partners, and Apple reportedly cancelled iPhone 15 OLED orders citing quality concerns.
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