In December last year, Samsung removed the Chinese display maker BOE from its supply chain after a dispute over royalty payments. But it seems the two firms have made amends. The Korean behemoth is reportedly considering buying smartphone displays from BOE again. It wants to source a portion of flexible OLED panels for its next-gen foldables from the Chinese company.
BOE has been one of Samsung’s biggest display suppliers over the years, along with its sister firm Samsung Display. The Chinese company particularly supplied LCD panels for the former’s TVs, though some budget and mid-range Galaxy smartphones also used its displays. But the relationship between the two firms deteriorated last year.
They had a dispute over royalty payments. Failing to reach an agreement, Samsung decided to remove BOE from its supply chain. At least according to the Korean media.
However, Samsung’s domestic media industry is now claiming that the company is once again in talks with BOE. And this time around, it is looking to buy premium display solutions from the Chinese firm.
The talks are for flexible OLED displays for the Galaxy Z Fold 5 and Galaxy Z Flip 5, both of which will arrive in the second half of the year. If the talks go through, it would be the first time Samsung’s high-end phones will feature BOE displays. The Galaxy M54 and Galaxy Watch 6 series may also use BOE displays, SBS Biz reports.
Samsung is in talks with BOE for foldable displays
As things stand, Samsung and BOE are reportedly discussing the process method, panel thickness, and the delivery timeline of the finished panels. So it isn’t final yet. The Korean firm may still want to evaluate the quality of the displays. After all, it has a reputation to protect.
A lot will depend on BOE’s capability of timely delivery as well. Since the new Galaxy foldables are expected to be official in August, Samsung would want the flexible panels to be available long before that.
But if BOE manages to impress Samsung in every aspect, it may even end up getting orders for future Galaxy foldables. The Korean firm is reportedly looking to diversify its display supply chain for premium devices to achieve lower manufacturing costs.
Talks with BOE are a “part of supply chain diversification,” a company representative told the Korean media. They refused to share further details, though. “We cannot disclose the contents of new products,” referring to the unreleased Galaxy Z Fold 5 and Galaxy Z Flip 5.
2023-02-21 15:07:28