What’s Happening with the Suppliers of Samsung Electronics?

Samsung has published a list of suppliers that the company transacted with over the current year

What’s Happening with the Suppliers of Samsung Electronics?

What’s Happening with the Suppliers of Samsung Electronics?

Samsung Electronics Has Just Published Its 2022 Supplier List

Samsung has recently published a list of suppliers that the company transacted with over the current year. The list wouldn’t have garnered much attention if it was a regular disclosure. However, upon closer look, it seems that Samsung Electronics is trying to change the status quo as far as its suppliers are concerned.

Changes to Samsung’s Supplier List in 2022

Upon a closer look at Samsung’s supplier list, one will find two significant modifications.

First, there is a surprising absence of the Chinese electronic components manufacturer BOE. During the third quarter of 2022, Samsung listed BOE as a panel supplier. Its absence in the overall suppliers’ list for 2022 raises some questions.

In May this year, Apple too dropped BOE from its list of suppliers for the iPhone 13. It found out that BOE had included some unexpected design changes to the OLED panels that the latter supplied.

However, the motive behind Samsung’s decision is a little different. BOE has been gaining a lot of PR boosts thanks to its association with Samsung. However, it went one step further and started using Samsung’s logo and name for marketing purposes.

This did not go down well with Samsung, and it decided to ask for royalties from BOE. BOE, in fact, agreed to negotiate the terms of the royalty, but ultimately, the talks did not provide any fruitful results. Long story short, BOE refused to pay royalties to Samsung. It was after this development that Samsung started reducing its dependence on Chinese suppliers. (Via Android Headlines)

Secondly, Samsung has added a new supplier, Sunny Optical, to the list. Reports indicate that Samsung included Sunny Optical as the supplier of the camera modules for the upcoming Galaxy S23 Ultra smartphone. The Chinese supplier will provide modules for two of the four cameras the smartphone will sport. This partnership with Samsung has resulted in consistently increasing revenue for Sunny Optical.

Sunny Optical is not the only supplier supplying camera modules for the upcoming Galaxy S23. Jahwa Electronics too will be supplying camera modules to Samsung for the same model. It is important to note that the same supplier is also being leveraged by Apple. The fact that the business relationship between Samsung and Jahwa Electronics has not been damaged despite the latter’s new partnership with Apple is something to be noted.

A Tendency towards Building a Nearshore Supply Chain?

Since the pandemic and the start of the Russia-Ukraine war, the stability of the supply chain across the world has been under tremendous pressure. This is specifically true for the semiconductor industry. Most companies who used to work with offshore suppliers are trying to decrease the width of their supply chain to ensure smooth and quick transport of raw materials.

Samsung’s latest supplier list seems to indicate that the company is trying to do the same thing.

Japan’s Alps Electric, Rohm, and Nitto Denko failed to feature in the list. Instead of them, we find that Korea’s Semes, Hansol Technics, KH Vatec, and Simmtech have been given priority.

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