It is reported that on the afternoon of June 15, Samsung Electronics asked all business groups to suspend procurement and notify some suppliers to postpone or reduce the shipment of parts until the end of July because of the need to take stock of internal inventory.

It is reported that on the afternoon of June 15, Samsung Electronics asked all business groups to suspend procurement and notify some suppliers to postpone or reduce the shipment of parts until the end of July because of the need to take stock of internal inventory. AVC Revo posted on June 17 that panel manufacturers such as BOE , TCL Huaxing , Huike and other panel manufacturers have all said that they have indeed received oral notices from Samsung Electronics to request a suspension of shipment.

First Financial reporter asked Samsung China people to verify this matter on the morning of June 17. The other party said that based on the situation of several suppliers, the situation of the entire Samsung Electronics is generalized; Samsung Electronics is a business unit operation system, and Samsung Electronics has asked all business units to suspend procurement, which is completely impossible.

is affected by relevant news. The stock price of panel stocks that had generally risen or even hit the daily limit a few days ago fell on June 17. At 9:30 am, BOE (000725.SZ) was 3.85 yuan per share, down 1.28%; TCL Technology (000100.SZ) was 4.44 yuan per share, down 1.33%; Visionox (002387.SZ) was 6.61 yuan per share, down 0.45%; Shenzhen Tianma (000050.SZ) was 9.56 yuan per share, down 0.83%; Sanlipu (002876.SZ) was 38.74 yuan per share, down 0.95%; Hongli Zhihui (300219.SZ) was 8.62 yuan per share, down 2.05%; Rainbow Co., Ltd. (600707.SH) was 4.75 yuan per share, down 2.46%.

First Financial reporter learned that Samsung Electronics had placed orders normally in early June 2022, but on June 15, it notified suppliers that the orders that had not shipped this month were suspended, involving electronic raw materials such as TV panels, IT panels, mobile phone panels and semiconductors. It is expected that the goods will resume in July. The panel factory is communicating and negotiating with Samsung Electronics.

General Manager of Aovi Ruiwo Chen Hui analyzed to the First Financial reporter that Samsung Electronics suddenly suspended panel procurement because Samsung Electronics' sales have not met expectations since this year. Russia ships about 7 million TVs every year, with Samsung Electronics accounting for 26%. If Samsung continues to discontinue the sale of TVs in Russia this year, 1.5 million units will be lost in the Russian market alone. It is expected that Samsung Electronics' complete TV shipments will drop by 2.9% year-on-year in the second quarter of this year, and will increase slightly by 4.8% in the third quarter under the low base last year.

Samsung Electronics’s subsidiary Samsung Display completely withdrew from the LCD panel business in June 2022. In order to ensure supply chain security, Samsung Electronics began to adopt a high inventory strategy in the fourth quarter of last year, and inventory remained at 14-15 weeks in the first quarter of this year. With the suspension of sales in the Russian market and the sluggish shipment in major developed markets, Samsung Electronics began cutting orders for panel procurement plans in February this year. However, even though the purchase volume has dropped significantly, Samsung Electronics' inventory has always been at a high level, and the overall TV inventory in early June was still as high as 16 weeks.

Auviruiwo estimates that Samsung Electronics will purchase actual TV panels in April and May 2.5 million and 2.2 million. It was originally planned to purchase 3.5 million TV panels in June, but now after the purchase is suspended, the actual purchase volume in June may be less than 2 million. Under this circumstance, panel prices rebounded under pressure, and panel manufacturers must adopt more aggressive production cut plans. Research data from

Sigmaintell shows that due to factors such as geopolitical conflict, inflation, and the epidemic, the global TV shipments fell by 7.1% year-on-year in the first quarter of 2022, and demand contracted beyond expectations in the second quarter, and expected the year-on-year decline in shipments to 8.8%. The demand situation in the second half of the year is still not optimistic. It is expected that global TV market shipments will fall back to 222 million units in 2022, a year-on-year decline of 4.9%, hitting a record low in the past decade.

In this case, panel and color TV companies promote growth through upgrading. Qunzhi Consulting expects that the global shipment scale of 120Hz and other high refresh rate TVs will reach 23 million in 2022, and the penetration rate of will increase to more than 10%; in 2022, the planned shipment of the top 6 TV brands of the world's top 6 TV brands exceeds 80-inch TVs exceeds 3 million, and will increase by nearly 40% year-on-year. Li Yaqin, general manager of

, analyzed to the First Financial reporter that terminal demand is lower than expected and high inventory pressure, not only Samsung, but also global consumer electronic brands are facing these common problems, and the top brands have performed more prominently due to their large size. "In response to global consumer electronics demand downward and brands aggressively destock, the current production cuts of panel factories are not enough, and the production cuts should be increased."