Samsung to Shutdown its LCD Business!
Samsung is reportedly planning to close down its last liquid-crystal displays (LCD) production lines.
“The decision to close the LCD business, by Samsung Display, will be completed by June of 2022 as the company faces tough competition from its Chinese and Taiwanese counterparts, reports GizmoChina.”
Company’s New Focus:
The company has decided to focus on manufacturing Organic Light-Emitting Diode (OLED) and Quantum Dot (QD) displays, as OLED panels have started to become the norm in the smartphone market.
That being said, the main reason for the shutting down of LCD panel production is the reduced profits in the venture, as per the report. A recent Display Supply Chain Consultants (DSCC) revealed that the price of an LCD is 36.6 per cent of what it used to be in January 2014, the component’s peak production period. No investment plan details have since been announced, and the employees of the LCD business are expected to be transferred to the QD business, the report said. Samsung Display had decided to close its LCD business in late 2020, but the plans were delayed at Samsung Electronics’ request due to a sudden increase in the prices of LCD panels during the Covid-19 pandemic.
What Report Says?:
A May report by market research firm Omdia also shows that LCD TV open-cell 
prices crashed to a new low this month across all segments be it 43-inch FHD or 75-inch UHD TVs. “Panel buyers are requesting further price reductions in June, and panel makers face strong pressure to reach agreements in their price negotiations with TV brands and OEMs,” the report stated. Its biggest customer Samsung Electronics had also cut dependence on the unit and signed deals with Chinese company BOE to provide displays for smartphones and TVs. BOE was the leading supplier of LCD panels accounting for over 20% of the market, ahead of LG, as of 2020, according to a Statista report, published in March.
Due to the pandemic-led shortage of components and rising inflation, Samsung is expected to miss its smartphone production target for this year. Though Samsung has not said anything officially on this, according to a report by South Korea’s Maeil Business News, the company is expected to cut down production by 30 million units in 2022. Apple too had decided to drop plans to make additional 20 million phones in 2022, according to a Bloomberg report.
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