Following the patent wars between Samsung and Chinese display manufacturer BOE, a new era of cooperation is beginning in the technology world. In a lawsuit filed by Samsung Display in the early months of the year, it was determined that BOE had used its OLED technologies without permission, and the US Federal Trade Commission banned shipments from the Chinese giant.

Samsung to Reach Agreement with BOE

However, the tension between the two companies has now given way to commercial negotiations. Last week’s visit by BOE Chairman Chen Yanshun to Samsung Electronics offices was the most concrete indication of this softening. TM Roh, head of Samsung’s mobile unit DX, and Yong Seok-woo, head of the television division, also participated in the meeting.

During this high-level meeting, Samsung’s strategy to balance production costs was discussed. According to the plans, BOE will ship approximately 10 million LCD panels for Samsung televisions. Furthermore, the supply of small-sized OLED panels for the Galaxy series smartphones is also being considered.

Samsung had previously used BOE panels in its affordable models, but legal proceedings interrupted this process. Now, price increases in key components like processors, memory, and camera sensors are forcing Samsung to make cost-effective moves in the display sector.

Instead of directly passing on these component cost increases to consumer prices, the company aims to achieve savings by diversifying its supply chain. The profit pressure on Samsung’s mobile division is the primary reason for re-engaging with more cost-effective manufacturers like BOE.

If this move goes through, Samsung will significantly reduce display costs in devices other than its flagship models. This strategic rapprochement, following the patent crisis, clearly demonstrates how competition in the technology market is shaped by economic realities.