In 2023, Samsung Electronics will purchase LCD panels from Chinese companies such as TCL CSOT, BOE, and AUO for more than 26.8 billion yuan.

Last year, Samsung Electronics spent more than 5 trillion won (26.8 billion yuan) on the purchase of liquid crystal display (LCD) panels in China. This is because Samsung Electronics’ main products are still LCDs, and coupled with the impact of Samsung Display’s withdrawal from the TV panel business, its dependence on Chinese companies has increased significantly. Starting this year, attention will be paid to whether Samsung Electronics, which has expanded its introduction of organic light-emitting diodes (OLEDs) from LG Display, can reduce its dependence on Chinese LCDs.

According to the South Korean Financial Supervisory Service's electronic disclosure system on April 5, Samsung Electronics spent 5.8624 trillion won (approximately 31.4 billion yuan) on LCD panels last year, a 2.7% decrease from the previous year's 6.0224 trillion won. However, considering that Samsung Electronics’ TV shipments last year were 36.03 million units, a 9.8% decrease from the same period last year, and that LCD panel prices have remained at a high level, it can be considered that the actual scale of expenditure has increased.

Currently, most of the LCD panels purchased by Samsung Electronics are purchased from Chinese companies such as TCL CSOT, BOE, and AUO, accounting for more than 90%. TVs and monitors sold by Samsung Electronics will be equipped with Chinese-made LCD panels.

In the past, Samsung Electronics obtained about 30% of all LCD panel supplies from its subsidiary Samsung Display, and the rest from TCL Huaxing, AUO and BOE. Samsung Display has stopped producing LCDs in June 2022. Although Samsung Electronics has also introduced some quantum dot (QD)-OLED and WOLED, the proportion is very small. Samsung Electronics still focuses on QLED, a type of LCD TV, as its main force. Therefore, Samsung Electronics' dependence on Chinese LCD has increased significantly.