Negotiations between Samsung Electronics and LG Display regarding the supply of TV panels to have stalled
At the beginning of year it became known that Samsung Electronics is negotiating with LG Display about purchasing LCD panels for TVs. The reason for this step was the termination of deliveries of company Sharp appropriate panels for Samsung.
However, LG Display, apparently, is not going to save Samsung. According to the source, delivery planned to start in July. However, most likely they will be postponed for an indefinite and very long period of time, as companies still are not able to negotiate.
To complete negotiations the Korean giants were going yesterday, but it did not happen. Industry observers report that negotiations have stalled and may be either cancelled or postponed.
One of the reasons is that Samsung insists on the necessity of Contracting for the supply of LCD panels, and LG claims that it is sufficient to sign a Memorandum of understanding. Analysts tend to believe that Samsung is not going to offer LG.
Exactly how Samsung will solve the problem of shortage of LCD panels for TV sets in case of failure of the deal with LG is unclear.