Affected by the shrinking market demand, two major TV makers, Samsung Electronics and LG Electronics, have cut their purchases of LCD panels needed for TVs. According to industry chain sources, when Samsung Electronics and LG Electronics were reported to cut their purchases, Samsung Electronics plans to reduce purchases by 30%-40%, while LG Electronics plans to reduce purchases by 10%-20%.
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Samsung Electronics and LG Electronics cut the asset of LCD TV panels. The most obvious impact will be on Samsung Display and LG Display. The panels they need are mainly purchased from these two companies. Samsung Electronics has greatly reduced the purchase of LCD panels required for TVs, which can also be seen in Samsung Display’s withdrawal from the LCD panel business.
At the end of last month, the sources reported that Samsung Display, a panel manufacturer under Samsung Electronics, has decided to completely abandon the no longer profitable TV LCD panel business in June, half a year earlier than the planned end of this year, and will focus on QD- OLED panel.
Moreover, the sources also mentioned in previous reports that Samsung Display initially planned to abandon the LCD panel business at the end of 2020, but due to the request of Samsung Electronics’ TV business unit, they retained some production lines and continued to operate, withdrawing from LCD panels.
The time for business has also been delayed. They have now decided to exit the LCD panel business in June, which means that the number of LCD panels required for TVs has been drastically reduced.
