Under pressure from Samsung in the OLED TV market LG Electronics has resorted to the manufacturing capability of Chinese arch rivals such as TCL, as sales of their QNED and Mini LED TVs come under pressure.

Currently LG Group who sold off their LCD product plants in an effort to pay down debt in their LG OLED Display division has recently initiated new talks with TCL CSOT and BOE in an effort to lower the cost of their LED TV’s which are manufactured in China.

According to analyst firm Omdia, Chinese manufacturer BOE accounted for 44% of LG’s LCD TVs last year.

The firm is now predicting that LG will reduce to 40% this year.

South Korean industry publication The Elec claims that demand for TVs remains murky for the remainder of the year.

In the first half of the year, TV manufacturers and distributors stocked up on inventory for TVs and LCD panels due to the uncertainty over US tariffs.

Earlier this year LG Electronics capped its purchases of LCD panels from TCL who it competes against for floor space at Australian retailers as well as sales.

The problem for the South Korean Company following the sale of their LCD manufacturing operations in China is that they have had to restructure its TV LCD supply chain.

LG Display accounted for 12% of TV LCD panels purchased by LG Electronics this year.

LG Display’s Guangzhou LCD factory was recently acquired by CSOT, which now calls the facility T11.

This has allowed TCL to increase production of their own LCD TV’s while also being able to lower the cost a move that has seen sales of both TCL and Hisense TV’s surge in Australia.

The other Chinese Company manufacturing TVs for LG is BOE, who also manufacture Hisense LCD TVs.