On the 11th of last month, the ITC issued a preliminary ruling that a total of eight companies, including Chinese display company BOE and seven of its subsidiaries, had violated Article 337 of the Tariff Act by illegally using Samsung Display’s trade secrets.
The final ruling on the matter is expected sometime in November, but the Korean site claims to have inside sources confirming the ruling.
While the final ruling is expected in November, it’s known that the US ITC’s decision to recognize the Chinese company’s technology theft and impose penalties is confirmed. (translated from Korean).
The ITC largely acknowledged BOE’s trade secret theft and misappropriation of confidential information through employee recruitment and other means. According to the ruling obtained by these Korean secret sources on the 12th of August, the ITC stated, “Despite Samsung Display’s excellent security measures, BOE obtained and used Samsung Display’s trade secrets through misappropriation” and “caused substantial harm and serious threats to Samsung Display.”
BOE’s punishment—a 14-year and 8-month ban
BOE faces an outright ban | Image by Pixabay
According to the ruling, the ITC first issued a “Limited Import Order” (LEO) to BOE for 14 years and 8 months. The LEO period is usually calculated based on the “time required to eliminate unfair profits.”
The ITC also blocked all marketing, sales, advertising, and inventory sales in the US by BOE’s headquarters in China and its local US subsidiaries. According to the sources, this ban will be “effective immediately” when the ruling gets officially published in November.
BOE displays that have already been imported and sold in the US won’t be affected, but the company will no longer be able to compete, leaving room for the two larger Korean display manufacturers.
Samsung and LG to benefit from the ban
Samsung manufactured 49% of all iPhone panels in Q1 2025 | Image by Samsung
Korean companies such as Samsung Display and LG Display are expected to benefit from the alleged ruling.
In the first quarter of 2025, Samsung Display, LG Display, and BOE were the main suppliers of OLED displays for iPhones, with Samsung manufacturing 49% of the panels, LG Display around 28%, and BOE around 19%, according to Omdia.
In the second quarter of this year, BOE’s share increased to 22.7% in small OLED panels for iPhones, surpassing LG Display (21.3%).
If the information acquired by the Korean news outlet proves to be true, this ITC ruling will remove BOE altogether as a competitor in the US, leaving Samsung and LG to fill the market share void.
The future of iPhone production and prices?
How does this ruling affect future iPhone sales and prices? Well, a large part of the iPhone portfolio is still manufactured in China (the country assembles 80% of Apple’s iPhones, according to Omdia).
The tariff odyssey that’s been going on for some time saw President Trump announcing new reciprocal tariffs on imported goods, which hit China the hardest. The latest development brought another 100% tariff on chips imported to the US, aiming to stimulate companies to move production to the US.
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