Samsung is seeking to diversify its display supply chain, according to a new report from Korea, in a move aimed at reducing costs and enhancing production flexibility.
Accordingly, Samsung Electronics decided to reduce its reliance on Samsung Display screens in some mid-range phones, and instead purchase display panels from TCL subsidiary CSOT.
Reports indicate that CSOT screens are about 20% cheaper compared to their Samsung counterparts, which supports the company’s strategy to offset the continuing rise in memory chip costs by reducing the costs of other components.
Samsung is also said to have ordered about 15 million display panels from CSOT, for use in upcoming phones such as the Galaxy A57 and some upcoming FE variants, which are expected to begin production in April.
On the other hand, this decision was not welcomed by Samsung Display, as it tried to object to senior management within the group, but these attempts were not crowned with success.
