First Visit to Korea After Ending Legal Dispute
Meeting with Key Samsung Executives Including Yoon Seokwoo
Discussions on Expanding BOE LCD Supply Volume
Tian Yansun, Chairman of Chinese display company BOE, which recently concluded a long-standing patent dispute with Samsung Display, visited South Korea on December 15 and met with key executives of Samsung Electronics.
According to industry sources, Chairman Tian visited Samsung Electronics' headquarters in Suwon that afternoon and held talks with Yoon Seokwoo, President and Head of the Visual Display (VD) Business Division, among others. It is reported that the two sides discussed expanding the supply volume of BOE's liquid crystal display (LCD) panels for Samsung TVs. Chairman Tian is expected to return to China after a two-day, one-night stay in South Korea, including this visit.
BOE is the world's leading company in the LCD market and is one of the suppliers providing LCD panels for Samsung TVs. However, the relationship between the two companies is subtle and complex. After Samsung Electronics and LG Electronics completely withdrew from the global LCD market, BOE, along with other Chinese companies such as CSOT, has taken full control of the market. Samsung TVs now have no choice but to source LCD panels from Chinese companies.
Currently, Samsung Electronics also procures large volumes of LCD panels from CSOT, a competitor of BOE. However, CSOT's parent company is TCL, which is the biggest rival threatening the profitability of Samsung Electronics' VD Business Division, making the situation somewhat uncomfortable. As a result, Samsung Electronics faces the challenge of reducing its reliance on CSOT for LCD panels.
Until now, it has been difficult for Samsung Display to increase the volume of BOE's LCD panels because of a patent infringement lawsuit initiated against BOE in 2022. In December 2022, Samsung Display filed a patent infringement lawsuit with the U.S. International Trade Commission (ITC) against BOE and several U.S. component wholesalers, and in October of the following year, filed an additional lawsuit against BOE for misappropriation of trade secrets.
In July of this year, the ITC issued a limited exclusion order (LEO) through a preliminary decision on the trade secret misappropriation case, banning the import of BOE's OLED panels into the United States for 14 years and 8 months, effectively marking a complete victory for Samsung Display in the legal battle. Recently, the two companies reached a mutual agreement, with BOE agreeing to pay royalties to Samsung Display, and ultimately ended all litigation. The amount of the royalty payment was not disclosed.
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