Core Viewpoint - Samsung Electronics is negotiating with BOE for the supply of over 4 million TV LCD panels in 2024, which would represent a significant increase in BOE's share of Samsung's total panel procurement from 4% to 10% [2][3][4] Group 1: Supply Chain Dynamics - The planned procurement from BOE will account for 10% of Samsung's annual TV LCD panel purchases, which are approximately 40 million units [2] - Other major suppliers for Samsung in 2024 include TCL Huaxing and Huike, with expected supplies of 8-9 million and around 6 million panels, respectively [2] - If BOE successfully supplies over 4 million panels, it may replace LG Display in Samsung's supply chain, indicating a shift in supplier dynamics [2][3] Group 2: Technology and Production Capacity - The panels supplied by BOE will primarily utilize IPS technology, which enhances viewing angles, a capability currently shared with LG Display [3] - The acquisition of LG Display's Guangzhou factory by Huaxing also adds IPS production capacity, potentially altering the supply landscape for Samsung's IPS TV panels [3] Group 3: Market Context and Future Outlook - Samsung has reduced its TV shipment target for 2023 from 38 million to 36 million units due to weak global demand, with actual shipments expected to be around 30 million [3] - The annual shipment volume for Samsung TVs is projected to remain at approximately 30 million units for both 2023 and 2024 [3] - The expansion of cooperation with BOE reflects Samsung's strategy for supply chain diversification and recognition of the technological capabilities of Chinese panel manufacturers [4]

Core Viewpoint - The prices of large-size LCD panels have decreased for the first time in nine months, with a 2% drop in June due to reduced demand and supply adjustments by manufacturers in response to previous urgent shipments before tariff increases by the U.S. government [1][2]. Group 1: Price Trends - The average price of the TFT 55-inch Open Cell panel was approximately $127 in June, down $2 (2%) from the previous month, while the TFT 32-inch Open Cell price fell by $1 (3%) to around $36, marking the first price drop in nine months [2]. - The overall factory operating rate for global TV panel production decreased from 86% in April to 80% in May, indicating a significant reduction in supply [3]. Group 2: Supply and Demand Dynamics - Manufacturers are reducing factory operating rates to balance supply and demand, with the operating rate for the "10.5 generation" factories producing 65-inch and 75-inch panels dropping from 96% in April to 77% in May [3]. - Despite a recovery in factory operating rates to 83% in June, the combination of increased production and declining demand is exerting downward pressure on prices [3]. Group 3: Market Outlook - Counterpoint Research predicts that TV shipments to the U.S. will decrease by 2.5% in 2025 compared to 2024, falling to 47.72 million units, reflecting a potential decline in demand [3]. - The Japanese Electronics and Information Technology Industries Association (JEITA) reported a 1.9% year-on-year decrease in flat-panel TV shipments in Japan from January to May, with the largest decline seen in the 50-59 inch category, which dropped by 5.8% [3].