Samsung President Han Jong-hee Returns from Taiwan: "If the Semiconductor Shortage Continues, There May Be Disruptions"

Han Jong-hee, President of Samsung Electronics [Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Han Jong-hee, President and Head of the Visual Display (VD) Division overseeing Samsung Electronics' TV business, said that he recently visited Taiwan to prepare for the global semiconductor shortage and warned that if the severe supply shortage continues across the industry, TV production could also face disruptions.

On the afternoon of the 21st, at the 'World IT Show 2021' held at COEX in Gangnam-gu, Seoul, Han told reporters, "As you know, there is currently an overall shortage of semiconductors," adding, "In this supply shortage situation, we discussed finding ways to 'win-win' and cooperate." Han, who returned from a business trip to Taiwan last week due to semiconductor supply issues, made these remarks.

Han reportedly visited Taipei, Taiwan, on the 12th and 13th, meeting with local semiconductor companies MediaTek and Novatek, as well as Taiwanese panel manufacturer AUO. Recently, the industry has been facing ongoing supply shortages of semiconductor components, including driver ICs, which are key parts of LCD panels. Consequently, LCD panel prices have been rising rapidly.

When asked how serious the semiconductor shortage is for the TV business, Han said, "Nothing specific has come out yet; I went to discuss preparations for the future," and added, "The supply should be maintained well through this year." When asked if the semiconductor shortage could cause disruptions in TV production, he replied, "If this situation continues, such cases could occur."

Han also spoke about Samsung Electronics' new Mini LED TV product, the 'Neo QLED' TV, saying, "The response is currently very positive," and "We are selling out because there is not enough supply." Regarding Micro LED TVs, he said, "The 146-inch mass production line is running at full capacity this year, and with the release of 110-inch TVs and 70-inch and 80-inch TVs in the second half, sales are expected to be substantial," adding, "We may need to expand the factory further."

Meanwhile, Han denied media reports suggesting that Samsung Electronics would source OLED panels from LG Display, stating, "There are no plans for that at this time."