{
  "id": 17955584,
  "title": "Samsung and LG Navigate China LCD Dilemma",
  "url": "https://urgent.news/2026/11/03/samsung-and-lg-navigate-china-lcd-dilemma",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-03T11:44:51.000Z",
  "source": {
    "name": "BusinessKorea",
    "slug": "businesskorea",
    "url": "https://www.businesskorea.co.kr/news/articleView.html?idxno=280374"
  },
  "original_language": "en",
  "account": "Samsung Electronics and LG Electronics, major competitors in the global TV market, are finding a solution in strengthening relationships with Chinese panel makers. In a bid to counter rising costs, both companies are planning to cooperate more closely with Chinese LCD panel manufacturers. This cooperation is a necessity, given that they are also direct competitors in the finished product market.\n\nSamsung Electronics is taking over a 10.16% stake in TCL China Star Optoelectronics Technology (CSOT), a TCL affiliate, from its subsidiary Samsung Display. The acquisition is valued at 1.2718 trillion won. CSOT also recently acquired LG Display's large LCD plant in Guangzhou, China. This move is aimed at strengthening strategic collaborative relations between Samsung and TCL.\n\nSimilarly, LG Electronics plans to adjust its supply chain to cope with rising costs. The company expects to procure about 93% of its 19.9 million LCD panels for TVs this year from BOE, CSOT, and HKC, with CSOT's share expected to grow. LG Electronics aims to mitigate the margin pressure by broadening its supply lines and adjusting purchase timing.\n\nDespite the competitive landscape, both Samsung and LG continue to sell LCD-based TVs as their flagship products. The profitability of these companies is heavily influenced by their ability to secure Chinese panels at favorable prices. According to industry data, BOE, CSOT, and HKC account for about 70% of the global LCD panel supply for TVs. However, China Appliance has reported a price increase policy for large panels, which could put pressure on profitability.\n\nTo address this issue, LG Electronics is looking to reduce the cost burden by expanding its supply lines and adjusting purchase timing. The company expects the upward pressure to become even greater in the first quarter of next year. Samsung and LG's decisions to cooperate with Chinese panel makers indicate their recognition of the critical role these components play in their product lines and their willingness to navigate the complex Chinese panel market to maintain profitability.",
  "summary": "While Samsung Electronics and LG Electronics compete with China’s TCL and Hisense in the global TV market, they are strengthening cooperation with Chinese companies in liquid crystal display (LCD) panels, a core component.Samsung Electronics has decided to take over the stake in a TCL panel affiliat",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}