Supply chain
Digitimes Research: Korea TV vendors outsourcing orders in order to secure panels
Tom Lo, DIGITIMES Research, Taipei

In an effort to secure TV panels in 2015 as supply will be limited, Korea-based TV vendors Samsung Electronics and LG Electronics are each planning to outsource TV production orders to makers in Taiwan and China such as Compal and BOE who have relations with supply chain makers that can guarantee supply, according to Digitimes Research.

LCD TV panel supply is expected to be limited in 2015, particularly for sizes 32-inch, which means that competition to secure such panels has increased. TV vendors meanwhile are looking to get around the situation and believe they have an advantage through outsourcing TV production to ODMs that have continuing relationships with panel makers such as Compal and Taiwan-based panel makers.

LG and Samsung are two of the vendors expected to take such measures in 2015, with each planning to outsource upwards of one million LCD TVs to ODMs. LG is expected to transfer orders to Compal and Samsung to China-based BOE, with LG's orders expected to pick up in the second quarter of 2015.

Samsung meanwhile aims to reach 60 million in LCD TV sales for 2016, up about 10 million on year, and plans to secure 32-inch LCD TV panels from BOE to help meet demand. Samsung may receive as high as three million 32-inch TV panels from BOE in 2016 depending on the panel maker's developments during the year, said Digitimes Research.

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