![Samsung and LG partnership is getting stronger in the field of LCD TV cooperation](https://grabvideo.b-cdn.net/wp-content/uploads/2023/10/Samsung-i-LG.jpg)
Samsung and LG partnership is getting stronger in the field of LCD TV cooperation
There are increasingly obvious signs that Samsung and LG are forming an ever-tightening alliance in the LCD TV market. Recently, it was reported that Samsung Electronics has asked the LG Display division to increase the shipment of large LCD panels during the next year by 1 to 2 million units compared to the current year.
It was noted that their interests are increasingly aligned in the direction that Samsung Electronics can reduce its dependence on Chinese companies, while LG Display can increase the speed of delivery of its LCD lines.
Samsung Electronics plans to expand the offer of large LCD panels supplied together with the LG Display division to more than 5 million units during the next year.
Initially, the VD (Video Display) department, which is responsible for the production of TV sets within Samsung Electronics, installed panels from the Chinese companies BOE, CSOT and AUO in the models of large diagonal sets.
However, as the competition on the LCD market intensified, primarily led by Chinese companies, the profitability of the LCD business deteriorated day by day. According to market research company Omdia, China’s LCD panel market share based on sales has increased from 20% in 2016 to over 40% in 2021.
Samsung and LG strengthen cooperation under the pressure of competition from China
Consequently, Samsung Display has decided to withdraw from the LCD business and phase out its production lines, starting with small and medium diagonals. Finally, the L8-2 line, which produced large LCD panels for televisions, also ceased operations in the middle of last year.
Samsung Electronics is filling the gap left by Samsung Display with panels from Chinese companies, while at the same time significantly increasing the supply of large LCD panels coming from LG Display’s facilities starting in 2022. The industry estimates that LG Display’s supply to Samsung Electronics in 2022 and 2023. amount to about 3 to 4 million units.
![Samsung-i-LG-OLED](https://benchmark.rs/wp-content/uploads/2023/06/Samsung-QD-OLED-S95C-03-1024x576.jpg)
Samsung plans to further expand its offering next year. Recently, it was reported that the VD division of Samsung Electronics has asked the LG Display division to increase the production and delivery of its LCD panels to more than 5 million units during the next year. This is interpreted as a strategy to reduce dependence on companies from China.
From LG Display’s perspective, cooperation with Samsung Electronics will certainly be welcome. Like Samsung Display, LG Display tends to reduce production due to the deterioration of LCD profitability. Consequently, the LCD lines in Pai and Gumi in Korea are operating at reduced volumes. However, the LCD line in Guangzhou, China still continued to operate.
The production rate of LG Display LCD line Guangzhou is only about 50%. By expanding the range of Samsung Electronics, the efficiency and speed of the line can be greatly improved.
The fact that LCD prices are on the rise again is also an opportunity factor for South Korean manufacturers. According to Omida analysis, the price of LCD panels for 65-inch TVs has increased by about 62% from $106 in September 2022 to $172 this year.
Meanwhile, Samsung Electronics and LG Display are also cooperating extensively in the field of OLED technology development. Samsung Electronics has decided to apply the LG Display V-OLED panel, which uses color display technology through color filters, to its 77-inch and 83-inch televisions. The cooperation is planned to continue next year, and the supply is estimated at as many as 1.2 million units, reports ZDNet Korea.