It was first reported that Samsung's display-making affiliate, Samsung Display, was going to shut down its LCD business by the end of 2020. However, the rise in demand for LCD panels in the aftermath of the COVID19 pandemic reportedly made the company reconsider its decision.
Subsequent reports suggested that the company had decided to shut down the business in 2021. That didn't happen as well. As we roll into the halfway point for 2022, the latest Korean media reports now claim that Samsung Display is finally ready to shut down its LCD production.
Even Samsung is buying LCD panels from China now
Production of LCD panels doesn't align with Samsung Display's long-term vision for the business. It's transitioning from LCD panels to Quantum Dot (QD-OLED) displays. Just last month, the company repurposed a defunct LCD plant to manufacture OLED panels.
Citing local industry sources, Korean media is now reporting that Samsung Display has finally decided to shut its LCD panel business in June. It no longer seeks to compete in a market that's dominated by cheaper panels from Chinese and Taiwanese counterparts. The end of this business wasn't expected until 2022 was up. This decision has come six months sooner as the falling LCD prices prevent Samsung from continuing production.
Samsung Electronics, the consumer electronics arm of the conglomerate, used to be the largest buyer of LCD panels from Samsung Display. It's now increasingly opting for cheaper LCD panels from Chinese and Taiwanese suppliers. With its LCD business shut down, Samsung Display will now exclusively focus on the production of Quantum Dot and OLED displays. The employees that worked on LCD production are expected to be transferred to the QD division.
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