Key Takeaways
1. Samsung has taken legal action against BOE for allegedly using its trade secrets, leading to a preliminary ruling from the ITC against BOE.
2. The ITC may impose a 14-year and 8-month import ban on BOE displays in the US if the ruling is confirmed in November 2025.
3. The potential import ban could severely impact BOE’s business in the US, requiring companies to pay a 100% bond for importing BOE panels.
4. Apple and Google could face supply chain challenges due to BOE’s role in providing OLED displays for their devices, potentially limiting sales to non-US markets.
5. A US ban on BOE could benefit Samsung and LG, while having less effect on Chinese manufacturers with limited US presence.
Samsung appears to have achieved a significant victory against the Chinese display manufacturer BOE. In October 2023, Samsung took legal action against BOE at the US International Trade Commission, claiming BOE had unlawfully taken and used its trade secrets. The ITC has supposedly issued a preliminary ruling in July against BOE, with a final decision expected to be made by November 2025.
Potential Import Ban
The South Korean news outlet Chosun is now reporting that the ITC might impose a ban on BOE’s displays from being imported and sold in the US for 14 years and 8 months if the ruling is confirmed in November. This potential ban, which is described as “unprecedentedly severe,” would lead to an “immediate and total blockade” of all BOE displays in the US market. The anticipated ruling from the ITC is said to also affect BOE’s subsidiaries operating in the US.
Impact on Technology Development
As per Chosun, the ITC’s choice to restrict BOE for a period of 14 years and 8 months is linked to the extensive time Samsung Display invested in developing “core OLED technologies.” Furthermore, once the ITC’s ruling is confirmed and enters the review phase, companies looking to import BOE panels will likely have to pay a 100% bond. This could significantly hinder BOE’s business in the US.
Consequences for Other Companies
According to reports from Meritz Securities Korea, BOE supplies OLED displays for the iPhone 17 and iPhone 17 Air. Due to the potential import restrictions, Apple may only be able to offer iPhone 17 models with BOE displays in non-US markets such as China. This could pose a major challenge to Apple’s supply chains over time, as BOE is a major supplier of OLED displays for devices like the iPhone 16e.
Additionally, the ban on BOE displays could also impact Google’s Pixel devices. The Google Pixel 8/8 Pro and Pixel 9/9 Pro use a combination of Samsung and BOE OLED panels. While it remains unclear who will be the primary suppliers for the upcoming Pixel 10 phones, it is likely that BOE will still play a significant role. Therefore, the Pixel 10 models may also experience some disruptions in their supply chains.
In conclusion, a US ban on BOE represents a notable development for Samsung and LG, who stand to benefit significantly from the ITC’s ruling. However, for Chinese manufacturers like Vivo, Oppo, and Huawei, which have minimal to no presence in the US, BOE will remain a crucial OLED manufacturer.
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