Nintendo shows nixing LCD may cost Samsung, LG

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Nintendo shows nixing LCD may cost Samsung, LG

Published: 08 Apr. 2025, 12:07 Updated: 08 Apr. 2025, 20:54

Audio report: written by reporters, read by AI

LG Electronics' wireless OLED TV revealed in 2025 [LG ELECTRONICS]

Samsung Display and LG Display, Korea's major panel makers, have pulled the plug on liquid crystal displays (LCD) on speculation that demand will subside and shift toward the more advanced organic light-emitting diode (OLED) type.

However, global demand for LCD panels remains strong — with notable Japanese gaming giant Nintendo choosing the panel for its latest console and some consumers preferring LCD televisions for their affordability.

The decision forces Samsung Electronics and LG Electronics to rely increasingly on Chinese and Taiwanese suppliers after halting in-house LCD production.

Nintendo switches back to LCD

A recent topic of discussion in the display industry is Nintendo’s decision to use an LCD panel in its next-generation Switch 2 console, scheduled for release in June. The latest model of the current Switch series features a 7-inch OLED panel supplied by Samsung Display. But the new Switch 2 will be equipped with a 7.9-inch LCD screen.

Given the success of the original Switch, which has sold over 150 million units globally since its launch in 2017, Nintendo remains a major client for parts suppliers. Industry insiders say the new LCD panels were likely sourced from Chinese or Japanese manufacturers.

A console version of Dave the Diver exhibited on Nintendo Switch at the G-Star 2022 game festival [YOON SO-YEON]

Nintendo publicly addressed its decision to move away from OLED.

Tetsuya Sasaki, general manager of technology development at Nintendo said April 2 that LCD technology has advanced significantly during the development period, adding that the company chose LCD after a comprehensive review of available technologies.

However, a display industry insider noted that “the cost advantage of LCD over OLED likely played a key role in Nintendo’s decision.”

LG Display's LCD plant in Guangzhou, China [LG DISPLAY]

Samsung, LG exit LCD production

The situation presents a challenge for Korean electronics makers. According to market research firm Omdia, Samsung Electronics and LG Electronics sold a combined 59.3 million TVs last year, 92.2 percent of which were LCD models.

Yet, neither company manufactures TV-sized LCD panels anymore. On April 2, LG Display completed the sale of its Guangzhou LCD plant to CSOT, a subsidiary of China’s TCL. Samsung Display fully exited the LCD business in 2022 after shutting down its production line in Asan, South Chungcheong. LG Display still produces small and mid-sized LCDs, but primarily for monitors and automotive displays.

LG Electronics' wireless LCD TV in 2021 [LG ELECTRONICS]

Despite withdrawing from LCD production, demand for LCD TVs remains strong. This has led Korean manufacturers to source panels from China and Taiwan.

In 2023, Samsung Electronics purchased 7.58 trillion won ($5.17 billion) in display panels from suppliers such as China’s CSOT and Taiwan’s AUO — a 29.3 percent increase from the previous year. LG Electronics bought 3.95 trillion won in LCD modules from China’s BOE, up 14 percent year-on-year — exceeding the company’s annual operating profit of around 3.42 trillion won.

Both Samsung and LG fell short of their OLED TV sales targets last year. Samsung aimed to sell 2 million OLED TVs but sold 1.44 million units, while LG targeted 3.5 million but reached 3.18 million.

U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C. on April 2 [REUTERS/YONHAP]

Potential upside from tariffs and the AI push

Analysts still say OLED TV sales may pick up, aided by new U.S. tariffs. Chinese-made TVs are now subject to a total tariff of 54 percent, which could boost the price competitiveness of OLED TVs in North America.

Korean firms largely manufacture TVs for North America in Mexico, meaning they are currently unaffected by the new tariffs. Trump signed orders expanding the goods exempted from his new tariffs on Canada and Mexico, which are part of the United States–Mexico–Canada Agreement (Usmca) imposed on April 2.

Samsung Electronics also unveiled its 2025 TV lineup on Monday at a product showcase in Seocho District, southern Seoul. The company introduced upgraded artificial intelligence features under themes such as “AI Home,” “AI Assistant” and “AI Viewing Optimization.”

Samsung Electronics introduces its Neo QLED 8K AI television at a press conference on Sept. 5, a day ahead of the IFA 2024 trade show. [SAMSUNG ELECTRONICS]

The number of AI-enabled models has nearly doubled from 34 to 61. For its high-end Neo QLED series, Samsung Electronics expanded screen sizes to include 100-inch and 115-inch models, up from the previous maximum of 98 inches. The OLED TV lineup has also grown from 10 to 14 models, now ranging in size from 42 to 83 inches.

“Samsung’s vision for AI is to serve as a partner that makes everyday life easier and more convenient for users,” said Yong Seok-woo, president and head of the Visual Display Business of Samsung Electronic’s DX (Device eXperience) Division.

“We will open up new worlds of experience that go beyond what traditional screens have offered.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.

BY LEE GA-RAM [[email protected]]