Samsung stops LCD TV panel purchases: Report

According to TheElec report, Samsung Electronics is facing the problem of oversupply of LCD panels. It is reported that Samsung has suspended the purchase of LCD panels from its suppliers until further notice.

Market watchers expect Samsung to purchase about 54 million LCD panels for its smart TV division this year. However, Samsung slashed its annual target to about 40 million TVs at a strategy meeting in the second half of the year as TV shipments fell short of expectations. Analysts now estimate that Samsung will acquire 44 million LCD panels throughout 2022.


One of the reasons for Samsung to temporarily stop LCD orders is that TV demand has fallen sharply in the first half of 2022, especially in Europe and North America. That’s not the only reason, however, Samsung is reportedly ordering 10% more TV panels in 2021 compared to the previous year, as a way to create a safe stockpile to address its global shortages of materials.

But industry insiders now estimate that Samsung has enough inventory for at least 16 weeks of TV manufacturing, shipping, warehousing, and distribution. In other words, given lower-than-expected TV sales in the first half of 2022 and Samsung’s increased panel orders in 2021.

The South Korean tech giant had to temporarily stop sourcing LCD panels from suppliers including BOE, Huaxing Optoelectronics, HKC Huike, AUO, and Innolux, and Samsung reportedly will not procure new LCD panels until at least the end of July.

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