Reportedly, due to the revamp of LCD TV panel production capacity in South Korea. Resultant, the supply of LCD TV panels in 2023 by two renowned Korean panel makers that comprise Samsung Display and LG Display will be going to reduce year on year respectively.
That records a decrease of 14 million pieces as compared to the year 2022. On the other hand, LG Display earlier predicted to ship 18 million units in 2022. While in order to take these things into consideration, the future reconstructing plans in South Korea and China. Resultant, its 2023 LCD TV panel business target will be going to reduced again from the original plan of 12 million units to 7 million units.
In addition to the information, the report suggests the untamed competition in LCD TV panel open-cell manufacturing. Also, the decline of LCD TV panel makers’ profit margins continuously prompted Korean panel makers to shuffle their business plans.
Samsung Display will no longer ship new LCD TV panels in 2023
Samsung Display sold its 8.5 Gen LCD TV panel production line in Suzhou, China in 2021. While, subsequently, pausing its domestic LCD TV panel production in 2022. Now, it clearly indicates that despite some panel inventory in 2022. Samsung Display will no longer ship new LCD TV panels in 2023.
Presently, the company is delivering 4.3 million units in 2022 while mostly with its affiliate Samsung Electronics (Samsung VD). Additionally, IT Home has recognized that the frequent drop in the price of LCD TV Open Cell has resulted in a fall in LG Display’s financial performance in the third quarter of 2022.
In order to overcome this scenario, LG Display steps towards taking further measures. It includes restructuring LCD TV panel production capacity. Whereby, it also includes relocating more production capacity in South Korea and mainland China.
LG Display lowers its 2023 target from 12 to 7 million units
It is worth informing here, that LG Display is one of the major LCD TV panel Open Cell suppliers to its affiliate TV maker LG Electronics (LGE). And hence Samsung Electronics earlier planned to purchase more and more LCD TV panels from LG Display to balance purchases in front of various suppliers. This is intended to prevent over-reliance on panel makers in China. Although, this plan may get affected by the change in LG Display’s plan.
As per Omdia’s analysis in Display Panel Dynamics, September 2022. Panel maker’s motive to ship 254.3 million LCD TV panels in 2023. It records an increase of only 1% from 2022. It includes 12 million expected by LG Display while it lowers its 2023 target from 12 to 7 million units. Therefore, it makes this figure lower by shipments down to 249.3 million units in 2023.