Samsung Display has decided to close down its LCD business in June, six months ahead of the previously announced schedule. Industry sources reveal competition has been quite intense, due to cheaper products made by its Chinese and Taiwanese counterparts.
For now, Samsung Display will focus on manufacturing OLED and QD (quantum-dot) panels. Employees are also set to be transferred to the QD operations.
According to a report by Display Supply Chain Consultants, the current price of an LCD is 36.6% of what it used to be in January 2014. Plus, it was taken into consideration that Samsung Electronics, the largest buyer of Samsung Display products has partnered with other LCD suppliers including BOE tech, AU Optronics, and LG Innotek.
The LCD division was initially set to shut down in 2020. However, the plan was delayed at the request of Samsung Electronics due to a sudden surge in LCD prices. The spike was caused by the need for affordable devices, including cheap smartphones for home entertainment, amid the Covid-19 pandemic.
Samsung Display was unavailable to comment but we should learn more once Q2 ends and the earnings report gets released come July.
Alfred Gitonga is a passionate tech news writer with a deep interest in smartphones and related technologies. He is a staff writer at Mobitrends.co.ke.
