Back in 2022, BOE, a key LCD panel supplier, refused to pay advertising royalties to Samsung, leading to a worsening in their relationship. Now, Korean outlet TheElec reports that Samsung’s TV division will meet with BOE early next month to discuss important issues regarding advertising royalties. If discussions go well, Samsung TV Division President Yong Seok-woo may visit China in the middle of next month for further discussions.
Samsung wants to expand its LCD panel supplier base
For the past couple of years, Samsung Display and BOE have been engaged in legal battles due to patent disputes and trade secret allegations. But when it comes to Samsung’s TV division, the company needs BOE for LCD panels as its own Display division ceased LCD production in June 2022. Both Samsung and LG are key clients for BOE’s LCD panels, with LG currently being the largest buyer.
Yong Seok-Woo at a press conference in April 2025 in South Korea.
The report adds that Samsung wants to diversify its LCD panel suppliers. After Chinese Display maker CSOT took over LG Display’s factory in Guangzhou, Samsung needs to reduce how much it buys from CSOT. Samsung also has an internal rule to keep any one supplier’s share under 30%. On top of that, the Korean firm is trying to grow its business in China, following orders from Chairman Lee Jae-yong. So, for Samsung’s TV division, improving relations with BOE is a key option.
In 2021, BOE became the second-largest supplier of LCD panels for Samsung TVs. As BOE used its partnership with Samsung for marketing purposes, Samsung demanded royalties of around 100 billion won. However, as mentioned above, BOE refused to pay the advertising royalties. In 2023, the two companies engaged in patent disputes, which led Samsung to briefly remove BOE from its supply chain.
Now, during their upcoming meeting, besides royalty discussions, the two companies will likely discuss how to handle the patent dispute between Samsung Electronics, Samsung Display, and BOE in China. If they reach an agreement, it may help Samsung stabilize its LCD panel supply while expanding its business in China, and BOE may secure a major client once again.
