Samsung Display to close LCD business in June

Samsung Display has decided to close its liquid-crystal display (LCD) business in June. The decision by the display affiliate of Samsung Group came six months sooner than expected, due in large part to rapid losses from falling LCD prices. According to industry sources, the closure is a result of Samsung Display's deteriorating competitive edge against rivals from China and Taiwan. These companies are able to produce cheaper LCD panels, which has caused Samsung Display to hemorrhage money in recent years. While no investment plan details have been announced, it is speculated that Samsung Display will shift its focus to more profitable OLED displays. This move would follow the lead of its parent company, Samsung Electronics, which has been investing heavily in OLED technology.

According to Display Supply Chain Consultants (DSCC), a U.S. market research firm, panel prices will continue to drop in the near future. The average price index of LCD panels, measured against 100 in January 2014, will fall to 36.6 in September of this year. This figure has dropped farther from the record low of 41.5 in April of this year, and 58 percent lower than the record high of 87 in June 2021. Also factored in was Samsung Electronics' partnership with overseas LCD suppliers, including BOE Technology Group, a Chinese electronic components producer and AU Optronics Corp. (AUO), a Taiwanese LCD panel maker.

Samsung Display, the display affiliate of Samsung Electronics, initially sought to close its LCD business in late 2020. However, the plan was delayed at the request of Samsung Electronics due to a sudden spike in LCD prices amid the COVID-19 pandemic. Now, Samsung Display will no longer produce LCDs used for large TV screens and will instead focus on manufacturing organic light-emitting diode (OLED) and quantum dot (QD) displays. The employees of the LCD businesses are expected to be transferred to the QD businesses. The display affiliate was first formed in 1991, as an LCD business arm under Samsung Electronics. It formally launched in 2012 as Samsung Display and has since merged with three local and Japanese makers of active matrix organic light-emitting diodes (AMOLED), for the production of advanced types of displays.