[Exclusive] Semiconductor Shortage Hits TV Panels?… Samsung President Han Jong-hee Heads to Taiwan

Han Jong-hee, Head of Video Display (VD) Division (President)

[Asia Economy Reporter Jeong Hyunjin] Amid the prolonged global semiconductor shortage, Han Jong-hee, President and Head of Samsung Electronics' Visual Display (VD) Division overseeing the TV business, is understood to have personally visited Taiwan. The visit appears to be a response to the anticipated shortage of key components such as driver chips, which are essential parts of TV LCD panels.

According to industry sources on the 13th, Han reportedly departed for Taipei, Taiwan, on a Korean Air charter flight the previous morning. Arriving in Taipei with related executives for a 1-night, 2-day schedule, Han met with Taiwanese semiconductor companies MediaTek and Novatek, and is also said to have engaged with Taiwanese panel manufacturer AUO. After meetings with industry representatives, Han is believed to have returned on a charter flight that afternoon.

This visit to Taiwan comes amid ongoing supply shortages of semiconductor components, including driver ICs, which are critical parts of LCD panels. With Samsung Electronics having held the number one position in the global TV market for 15 consecutive years, the visit is interpreted as a preemptive measure to prevent these component shortages from impacting future operations. According to market research firm Omdia, the average price of 55-inch LCD TV panels last month was $203, an 8% increase from the previous month. This marks the first time in four years, since July 2017, that prices have surpassed $200.

Display specialist market research firm DSCC recently released a report forecasting that LCD panel price increases in the second quarter of this year will reach 12% compared to the previous quarter. This is an upward revision from the earlier forecast of 3-6% made a month ago. DSCC pointed out that "the shortage of display driver ICs (DDIC) and Corning's announcement of increased glass substrate prices are creating an environment conducive to price hikes."

Taiwanese media also reported that Han submitted his itinerary in advance to the local Ministry of Economic Affairs and the Centers for Disease Control for approval due to the COVID-19 situation.

A Samsung Electronics official declined to confirm Han's business trip but stated, "Trips to China and Taiwan have been ongoing, and unlike automotive semiconductors, the home appliance sector is not in an urgent situation where production cannot proceed due to parts supply issues." The official added, "Since the supply chain has been diversified beyond Taiwan, the purpose was likely to conduct a routine status check."

Meanwhile, Taiwanese media reported on the same day that Samsung Electronics and UMC, Taiwan's fourth-largest global foundry (semiconductor contract manufacturing) company, are establishing a new strategic partnership. According to United Daily News and others, Samsung will provide image processing chipsets (ISP) for mobile phones, related panel driver chips (IC), and equipment, while foundry company UMC will handle manufacturing plants and OEM (Original Equipment Manufacturer) operations.

This partnership is expected to create a competitive landscape between the UMC-Samsung Electronics alliance and the world's largest semiconductor foundry alliance of Taiwan's TSMC and Japan's Sony. Sony and TSMC began cooperating in January last year to produce CIS (CMOS Image Sensors) and other products. Industry observers believe that this strategic partnership will enable UMC to secure stable order volumes and efficiently increase the utilization rate of its production facilities.

This content was produced with the assistance of AI translation services.