Own LCD factory burns ass! Korean media: Taiwan Lu factory supplies Samsung 60% of TV LCD
South Korean media Joongang Daily reported on the 4th that the price offensive of LCD manufacturers in Taiwan and China has changed the TV production mode of South Korea’s Samsung Electronics and LG Electronics, produced by Samsung/LG’s panel subsidiaries The LCD has been gradually replaced by low-priced Taiwan/China-made LCDs, and its own panel manufacturers Samsung Display and LG Display (LGD) are in a dilemma.
According to IHS Markit, among Samsung’s TV shipments (44 million units) this year (2019), the proportion of LCDs supplied by Samsung Display, its panel subsidiary, is estimated to be only 37.7% (16.6 million units). Sixty percent (61.4%) will purchase from Taiwan/Land panel manufacturers. In terms of Q1 2019 (January to March), among Samsung's TV sales (10.33 million units), Samsung Display's supply accounted for only 37.1% (3.838 million units), and Taiwan/land panel makers accounted for 62% ( 6.408 million units). For example, Samsung’s high-priced product 'QLED TV' uses Taiwan’s AUO (2409) LCD.
The situation of LG Electronics is similar to that of Samsung. IHS Markit pointed out that in Q1 of 2019, LG's LCD TV sales (7.896 million units) accounted for less than 50% and only 49.3% of LCD TVs supplied by LGD.
Shinhan Financial Investment pointed out that 'At present, China has three 10.5-generation LCD production lines starting to produce, and South Korea’s 8-generation LCD production lines have lost their competitiveness.”
South Korean media Chosun Ilbo, Japanese version, reported on August 16 that Samsung’s Samsung Display and LG Display (LGD) are considering reducing the production of large-size liquid crystal panels (LCD) in South Korea, mainly due to Chinese manufacturers offering low prices The offensive has disrupted the market and caused the price of LCD panels to plummet. It has become a situation where no money can be made no matter how much it sells.
The Japanese media quoted a report by the Korean Economic News on August 16 that according to a number of industry stakeholders, Samsung plans to halve the output of LCD panels in South Korea. Samsung’s current monthly output of LCD panels in South Korea is about 250,000. The 8.5-generation production line 'L8-1In September, it will be reduced by 30,000 pieces (that is, the total monthly production will be reduced by 120,000 pieces).
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