Samsung Display’s LCD manufacturing operation will be shut down abruptly next month. The shutdown had been planned for December this year, but it might potentially come as early as the end of June, according to the Korean internet giant.
According to sources with insider knowledge, Samsung’s competition has been fierce, and the business wants to avoid further losses. Samsung Display will focus on producing OLED and Quantum Dot (QD) panels in the future, with all personnel from the LCD division expected to be relocated to the QD division.
According to previous data from Display Supply Chain Consultants, the price of LCD panels is just 36.6 percent of what it was in 2014, when production was at its height. BOE, a Chinese display manufacturer, and AU Optronics, a Taiwanese display manufacturer, are also offering clients lower prices.
Samsung had planned to exit the LCD market in 2020, but the COVID-19 pandemic heightened the demand for home entertainment on low-cost devices such as inexpensive TVs and smartphones. As a result, Samsung was compelled to postpone this significant move.
Samsung executives have yet to react to a request for comment, but we anticipate to learn more about the shutdown’s financial ramifications in July when the company releases its second quarter earnings report.