Foxconn Canceled the Supply of Samsung LCD Screen and Promoted Samsung and LG to Become Partners

Samsung and LG are two world-famous consumer electronics giants in South Korea, and there is a difficult competitive relationship between them. Foxconn and Samsung are also old enemies. The field of display panel is a life and death struggle. Foxconn Group wants to revitalize its TV business. Earlier, Foxconn cancelled the supply of Samsung Electronics LCD screen, resulting in a screen deficit in Samsung TV business. Subsequently, Samsung began to discuss cooperation with LG Electronics on display.Samsung Electronics and LG Electronics, the two companies are very competitive competitors in Korea at home and abroad, and there is fierce competition in many product lines. However, according to the latest news from foreign media, under the force of Foxconn, the two giants are changing from enemies to allies.It is reported that Samsung Electronics is negotiating with LG Electronics and will purchase each other's LCD panels for its TV business. If the two sides reach a cooperation agreement, it will be the first time in the history of Samsung Electronics to use the panel of LG, an old rival. Such cooperation is very rare.

It is reported that the LG LCD screen purchased by Samsung will be used in the new TV set released early next year.Samsung Electronics and LG Electronics are among the top consumer electronics manufacturers in the world. The industrial layout of the two companies is very similar. They have countless product lines from LCD panels to household appliances, smart phones and televisions. In addition, they also implement the strategy of self-sufficiency of most upstream parts.This cooperation between the two sides stems from Foxconn Group's cancellation of the supply of Samsung Electronic LCD screens.

Previously, Samsung Electronics was one of the shareholders of sharp in Japan. Sharp has long provided Samsung with LCD screens. Unexpectedly, after Foxconn Group acquired sharp last year, it announced that it would stop supplying screens to Samsung Electronics.On the one hand, Foxconn Group and gou are determined to revive Sharp's long-standing TV business and announced that they will increase their annual sales from 5 million to 10 million. Therefore, sharp needs to provide more LCD screens to its TV Department.On the other hand, it is well known that Foxconn Group and Samsung Electronics are long-standing enemies. Foxconn and other Taiwan electronics industries are worried that the unlimited expansion of Samsung Electronics in various raw materials, parts and consumer electronics is leaving Taiwan's science and technology industry with no way to go. Earlier, Gou also said that he would cooperate with consumer electronics companies in Taiwan and Japan to jointly prevent the further expansion of Samsung Electronics.

Sharp's suspension of supply led to a deficit of 3 million screens in Samsung's TV business every year. Then Samsung began to negotiate with LG display company under LG Electronics.Samsung Electronics said that at present, it and LG are still in the process of negotiation and have not signed a final cooperation agreement.According to industry rumors, Samsung Electronics hopes to obtain the supply of 700000 display screens from LG, but the number has been reduced to 100000. At present, the two sides are still bridging their differences.

Samsung Electronics is the world's largest TV manufacturer, selling 45 million TV sets every year. It can also be seen from this scale that the display screens supplied by LG account for a small proportion of Samsung's total output.An executive of Samsung Electronics disclosed that the negotiation time between the two sides was longer than expected, mainly involving different LCD panel technologies and specifications. If Samsung finally purchases LG's screen, it will develop a new TV model and be fully compatible with LG's panel technology.Industry sources said that Samsung is likely to use LG screens on 40 inch to 60 inch TV models.

Samsung and LG are global TV manufacturers. Industry insiders said that if the panel procurement cooperation can be reached, the friction in the global TV market is also expected to be alleviated.After market elimination, LG and Samsung have become two major consumer electronics giants in Korea, and their products are widely sold in the global market. In order to compete for the market, the two Korean companies have had a lot of disputes and patent lawsuits in the past.Earlier, Samsung Electronics also filed a complaint in South Korea, saying that employees of LG Electronics deliberately broke the ring of Samsung washing machine in a home appliance store in Germany. In addition, in many home appliances and other product categories, Samsung and LG have also launched countless war of words about who is the first in the world.