Samsung to Spin Off LCD Business as it Focuses on OLED Technology
By Karla Robinson
February 23, 2012
February 23, 2012
- South Korean firm Samsung, the world’s biggest supplier of LCDs by sales, “plans to spin off its liquid-crystal display operations into a separate company in an effort to revive its unprofitable flat-panel business, and said it is considering merging the new entity with affiliates within the Samsung group,” reports the Wall Street Journal.
- The new company, expected to be launched April 1st with capital of $668 million, will be called Samsung Display Co. and Samsung Electronics will hold all its shares.
- The split is part of Samsung’s plan to focus on OLED and gain competitiveness in LCD. The LCD business might be merged with affiliates like Samsung Mobile Display (which holds a 95 percent share of the global OLED market) or S-LCD, an unsuccessful collaboration with Sony.
- “(Shifting to OLED) is an inevitable trend now. There’s no reason for Samsung to pour in more investment into its LCD business, and it would rather focus on raising its OLED technology,” said HI Investment & Securities analyst Song Myung-sub, adding that “with the industry’s LCD supply shrinking overall, some Korean players will see a turnaround from the businesses from the third quarter of this year.”
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