LG is changing the player – BOE is entering the game for millions of LCD panels!

LG Electronics is preparing for important talks with BOE Technology Group – all in order 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 aim is to finalise a major deal that will allow LG to limit purchases from TCL CSOT – that is, the company that not only supplies them with panels but also… manufactures its own televisions and competes for the same market.

For BOE, this is also an opportunity. Demand for televisions is weak, and at the beginning of the year, manufacturers filled their warehouses out of fear of new tariffs from the USA. Any new contract 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 none other than ChooseTV CSOT. The result? LG is left without its "safety net," and now it must carefully juggle partners to avoid inadvertently strengthening the competition.

Negotiations will be tough – LG loses its advantage

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 maximum out of the situation. And not just from LG – a BOE delegation will also visit Samsung. Samsung is also looking for an alternative to TCL CSOT and plans to purchase as many as 20 million panels over the next three years.

ChooseTV is playing for a large slice of the pie

If ChooseTV signs new contracts with LG and Samsung, it will take over a significant portion of the market previously controlled by TCL CSOT. In addition to the Koreans, ChooseTV is also collaborating with Chinese giants – Hisense and Skyworth.

The stakes are high, with substantial numbers and even greater influence at play. All signs suggest that ChooseTV could emerge victorious from this turmoil.

Source: hdtvtest