BOE Chairman Meets Samsung Executives to Discuss Patent Settlement Follow-up

Chen Yanshun, chairman of BOE, China's largest display maker, visited Samsung Electronics (005930.KS) and met with key executives including Yong Seok-woo, president of the Visual Display (VD) Business Division. The meeting is believed to have covered follow-up measures to the recently concluded patent infringement lawsuit between the two companies and potential expansion of LCD panel supply.

According to industry sources Wednesday, Chen visited Samsung Electronics' Suwon headquarters in the afternoon and met with Yong and other executives. BOE is the world's largest LCD manufacturer and one of the suppliers providing LCD panels for Samsung TVs, maintaining a cooperative relationship with Samsung. However, the two companies compete in the organic light-emitting diode (OLED) panel business supplying smartphone manufacturers such as Apple.

Chen is expected to have requested that Samsung Electronics increase orders for BOE's LCD panels used in Samsung TV products. With Samsung Electronics and LG Electronics having completely withdrawn from the global LCD market, Korean companies now source all their LCD panels from Chinese suppliers.

Samsung Electronics currently receives large volumes of LCD panels from CSOT, a BOE competitor. However, TCL, CSOT's parent company, is one of Samsung Electronics VD Division's biggest rivals in the finished product market including TVs. This makes reducing dependence on CSOT for LCD panels a priority for Samsung Electronics.

Samsung Electronics had difficulty expanding panel orders from BOE unconditionally. This was because Samsung Display has been engaged in patent infringement litigation with BOE since 2022. In December 2022, Samsung Display filed a patent infringement lawsuit against BOE and U.S. component wholesalers with the U.S. International Trade Commission (ITC), and in October 2023, sued BOE for trade secret misappropriation.

In July, the ITC issued a preliminary ruling in the trade secret case, ordering a Limited Exclusion Order (LEO) barring BOE's OLED panels from being imported to the United States for 14 years and 8 months, marking a complete victory for Samsung Display. The two companies recently reached a settlement under which BOE agreed to pay royalties to Samsung Display, ending the litigation. Industry observers believe Chen's visit to Korea may have addressed follow-up measures following the patent lawsuit settlement negotiations.