Samsung Takes Sharp to Arbitration for Panel Supply Change
January 23, 2017


 
Samsung Electronics has filed an international arbitration request with the International Chamber of Commerce requesting that Sharp either resume its display panel supply to Samsung or compensate the company for its losses.  As we have noted in mid-December, Sharp’s new owner Hon Hai/Foxconn seems to have directed Sharp to end it supply agreement with Samsung Electronics in order to focus production on Sharp’s own brand. Samsung had been receiving ~4.5m 40”+ size panels from Sharp, ~8% of Samsung’s demand, and the company has been forced to negotiate for alternate supply with a number of other producers, particularly its rival LG Display.  Samsung is asking for $492m in damages from Sharp.  While aggressive license negotiating tactics are the norm in the CE space, public facing panel supply negotiations are not, and this obvious affront to Samsung by Hon Hai seems to be a bit more than the usual tactics. 

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