Samsung is a household name, selling millions of products to users across the globe. The company excels in making state-of-the-art smartphones, laptops, tablets, and more.
However, it is set to make an exit from its LCD business as news sources report that “Samsung Display will soon close the last of its LCD production lines.”
This decision by the tech giant has come sooner than previously anticipated since the company is yet to reveal any investment plan details.
Samsung display closes LCD production.
The consistent decrease in the prices of LCDs was the driving force behind this decision, due to which the company experienced a loss in its profits. The DSCC has estimated that the price index of LCD panels is expected to drop even further later this year.
The South Korean company’s production reached its all-time high back in 2014 and was in high demand, but the current price of an LCD is 36.6% of what it used to be back then.
Another factor that played a fundamental part was that its parent company Samsung Electronics shifted orders for its product displays to foreign LCD providers, like the Chinese company AU Optronics Corp. and the Taiwanese BOE Technology Group.
Samsung Display first decided to halt production two years back but was unable to do so as the demand and price of LCDs saw a sudden increase during the COVID-19 outbreak.
However, Samsung is not entirely shutting down its business but is rather shifting to the production of organic light-emitting diode (OLED) and QD displays. The company will also relocate the workers employed at Samsung Display to the business of manufacturing quantum dot (QD) displays.
Samsung Electronics laid the foundation for its display partner back in 1991, but the company was officially launched later in 2012.