Samsung Could Reportedly Use BOE Displays for Its Galaxy Smartphones, Smart TVs

Samsung is reportedly planning to purchase display panels from Beijing Orient Electronics (BOE). As per the report, the Chinese display manufacturer is partnering with the South Korean tech giant to supply small-sized OLED panels for Samsung's Galaxy smartphones, and large LCD panels for its smart TVs. If true, this development means Samsung and BOE's relationship is improving, following an intense legal battle and a year-long cooling of ties between the two companies. The new development reportedly occurred last week following meetings between executives from both companies.

Samsung and BOE Could Renew Partnership

According to South Korean outlet DealSite, BOE Chairman Chen Yanshun met with several Samsung executives, including TM Roh, President and Head of the DX Division and the MX Business. Citing industry sources and people familiar with the matter, the publication claimed that the discussions covered not only large LCD panels for televisions but also small-sized OLED screens for mobile devices.

Notably, BOE has previously supplied OLED panels for Samsung's lower-end Galaxy smartphones. However, that arrangement reportedly ended last year after relations deteriorated due to a patent dispute between BOE and Samsung Display. Following the fallout, Samsung Electronics is understood to have sourced limited quantities of OLED panels from Chinese display maker Tianma instead.

As per the report, BOE is now seeking to re-enter Samsung's supply chain, potentially beyond entry-level models. It is said that BOE is keen to supply panels even for higher-end smartphones, although there is no confirmation that Samsung has agreed to such terms. BOE already supplies OLED panels to several Chinese smartphone brands, including Oppo, Huawei and Vivo. It is reportedly also a limited supplier for some iPhone models.

BOE is also understood to have requested an increase in the number of TV LCD panels it supplies to Samsung Electronics. BOE previously supplied around 10 million LCD panels annually to Samsung, but volumes reportedly dropped to about 1 million units following the patent dispute.

The timing of these discussions is interesting, and the report claims that it has to do with the global RAM shortage, which is forcing OEMs to cut costs or increase product prices. It is possible that Samsung is diversifying its suppliers to reduce the costs of display panels. Whether that will be enough to mitigate the rising memory component prices cannot be said.