Samsung processes and produces panels…LG modularizes and supplies display panels.

Samsung and LG have different display policies in the quantum dot (QD) TV. They will start producing QD TVs next month. Samsung will add the QD sheet and optimization solution to the ordinary LCD panel produced by Samsung Display. In contrast, LG follows the modularized TV manufacturing process: i.e. LG Display supplies finished QD panels to LG Electronics. Public attention is drawn to how the different panel strategies of Samsung and LG will affect sales in the emerging QD market.

According to industry insiders in January 18, Samsung Electronics is planning to release the quantum dot TV around the world sequentially starting with the Korean market next month. SEC will receive the TV panels from Samsung Display, attaches the quantum sheet and installs the dedicated engine. The quantum dot film is supplied by only one SME in Korea on condition that it will supply this sheet only to SEC, not other panel makers or TV manufacturers. SEC is also trying to differentiate itself from the QD TVs by calling it ‘SUHD,’ not ‘QD.’

“The SUHD TV is the next-generation TV that SEC released by making the most of the know-how it accumulated in the TV business,” said an SEC insider. “To implement the best picture quality, the Visual Display (VD) Business Division of SEC processes the panels.” He added, “We decided to do so in consideration of the fact that, if Samsung Display produces the quantum dot panels, Samsung’s unique technology may be transferred to other TV manufacturers in China and Japan.”

In contrast, LG Display processes LCD panels as QD panels and supplies them to LGE. Panel manufacturing is separated from TV manufacturing. LG Display can supply TV panels with QD functions if customers other than LGE demand them. This is what differentiates LG from Samsung.

“LG views OLED, not the quantum dot, as the next-generation TV,” said an LGE insider. “We have enough competitiveness in the QD TV. We will take necessary measures while watching market conditions.”

LGE expects that it will be able to produce TVs and manage the supply chain by using modularized panels while making the most of the panel technology of LGD, global No. 1.

In the TV market not only Samsung and LG of Korea, but also most Chinese makers are forecast to make the QD TV their key model in their sales competition this year. Samsung and LG, global No. 1 and No. 2 TV makers, put SEC and LGD respectively in charge of the ‘QD’ function, the main competitve point.

“Unlike the OLED TV segment where there is no competition, the QD TV is an item that will see the fiercest competition in the premium TV market this year,” said an industry insider. “Our attention is drawn to how the different QD panel strategies of Samsung and LG will affect sales.”