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Samsung Halts LCD Orders As TV Demand Slows

Samsung has suspended orders of LCD panels due to inventory bloat and low demands for TVs.

Display panel makers BOE, CSOT, HKC, AUO, and Innolux were all sent notices in mid-June.

The suspension is expected to last until the end of July, but this will depend on when inventory and demand levels are at then.

The company’s inventory assets reached A$52.36 billion at the end of March, up from A$46 billion in December. The ratio of inventory to total assets likewise leaped to 10.8 per cent, from 9.7 per cent the year prior.

It now has 16 weeks’ worth of inventory. Before the pandemic it had 7 to 9 weeks’ worth.

Samsung’s TV arm has reduced its shipment targets for 2022 from 45 million to 40 million. Samsung shipped 50 million TVs last year, which was a 10 per cent increase from 2020.

The company isn’t alone. LG, TCL, and Sony have all lowered their 2022 shipping targets, and have reduced LCD panel orders.

Analyst firm Omdia said display panel factories were operating at an average of just 77 per cent during June, the lowest production rate in five years.


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