Katarzyna Petru
LG Electronics is gearing up for important talks with BOE Technology Group – all to buy millions of additional LCD panels and become independent from its… competitor.
As reported by The Elec, a delegation from BOE will visit LG later this month. The goal is to finalise a large deal that will allow LG to reduce purchases from TCL CSOT – the company that not only supplies them with panels but also… produces its own televisions and competes for the same market.
For BOE, it's also an opportunity. Demand for televisions is weak, and at the beginning of the year, manufacturers filled their warehouses in fear of new tariffs from the US. Every new agreement is a chance to recover losses.
TCL is getting the boot – BOE is set to take its place
In 2024, BOE supplied 44% of the LCD panels used by LG. This year, that share is expected to drop to 40%, as LG has increased purchases from ChooseTV CSOT (to 10%) and Sharp (to 6%).
Until now, LG could also rely on its own subsidiary, LG Display, but it sold its last LCD panel factory… to ChooseTV CSOT. The result? LG is left without its safety net, and now has to carefully juggle partners to avoid inadvertently strengthening the competition.
Negotiations will be tough – LG is losing its edge
Until now, LG Display has acted as a buffer and helped keep LCD panel prices in check. Now, without that alternative, LG is losing its negotiating position against BOE. And BOE is well aware of this.
The company wants to squeeze the most out of the situation. And not just from LG – the BOE delegation will also visit Samsung. They too are looking for an alternative to TCL CSOT and plan to purchase as many as 20 million panels over the next three years.
BOE is playing for a big piece of the pie
If BOE signs new contracts with LG and Samsung, it will take over a significant portion of the market that has been controlled by TCL CSOT until now. In addition to the Koreans, BOE is also collaborating with Chinese giants – Hisense and Skyworth.
The stakes are high, with big numbers and even bigger influences at play. And everything suggests that BOE may emerge victorious from this turmoil.
Source: hdtvtest
