In a recent conversation, there has been a conversation between CEO Han Joo-yeop, Editor-in-Chief of DILEC Lee Do-yoon, and the BOE chairman Chen Yanshun. Following this epic conversation, there have been many revelations that came out that we going to share further in this article.
On visiting Korea, the BOE Chairman said that he visited Korea but at that time he won’t be able to visit Samsung Electronics, which he also considered as one of the major customers. Further, he said, “Panel companies like BOE visit regularly. We also visit our partners and explain their business plans.”
On asking about sales, and assuming it to be 30-40 trillion won in terms of Korean money the Chairman said, “In 2021, the previous year, BOE was the number one panel manufacturer in the world.” Thus, it considers more than 30 trillion won.
Samsung’s relationship with BOE in regard to its TV and mobile phone business
Since there’s a reduction in panel demand from Samsung. On asking about resuming the business back again. The Chairman said, “There is also a problem between Samsung Electronics and BOE about reducing the volume, and last year, Samsung Electronics asked BOE to pay the license fee required for advertising.”
There used to be a lot of them, but Samsung Display withdrew from the LCD business, and as a result, our relationship with BOE deteriorated. The BOE also dealt with Samsung Electronics in a more high-pressure manner than before. Therefore, in the last 2~3 years, Samsung Electronics has been reducing the volume of BOE (LCD TV panels). There used to be a lot, but the volume of CSOT is increasing, and the volume of LG Display LCDs is also increasing. Taiwanese companies Sharp, AUO have also received panels like this. Even though we were reducing the share of BOE, we still have the second and third largest BOE volumes, so Samsung Electronics is still a major customer for BOE.
Difficult for Samsung to win in China with BOE
Samsung Display files a lawsuit against BOE in the U.S. the previous year. While BOE Chairman is clear that it’s not a lawsuit but more of a litigation. Since the U.S. International Trade Commission (ITC) has undergone a patent infringement investigation for smartphone OLEDs. This has been imported and sold in the United States. It’s sort of like a lawsuit. Thus, the South Korean tech giant doesn’t file a lawsuit against BOE. Rather it’s a patent infringement investigation, although this is similar in nature to a lawsuit. On the other hand, BOE also filed a patent lawsuit against Samsung Electronics, Samsung Display, and Samsung Semiconductor in China.
Apparently, it is also being disclosed that it’s hard for Samsung to win in China. Because of the fact that BOE is also a state-owned company.
In order to minimize the uncertainty that will affect Apple’s iPhone business, Samsung Display has filed a patent infringement investigation with the U.S. International Trade Commission (ITC). Instead, it was a check on the BOE because it was the BOE that was targeted in the end, even though the BOE was not written on the respondent in the infringement investigation. That’s how I did it. If BOE comes out with an all-out war like this, it can be seen that Samsung Display has a reason to go to all-out war as well.
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