Samsung Display has decided to shut down its liquid crystal display (LCD) business in June, as its Chinese rivals produce cheaper products and its global competition The advantage is declining, making it difficult.
The Samsung Group's display unit's decision came six months earlier than expected, largely due to falling LCD prices .
According to US market research firm Display Supply Chain Consultants (DSCC), the average price index of LCD panels measured on a 100 basis in January 2014 will drop to 36.6 in September this year. This figure is much lower than the all-time low of 41.5 in April this year, and 58% lower than the all-time high of 87 in June 2021.
Another factor is that Samsung Electronics, the largest buyer of Samsung's display products, has begun to cooperate with overseas LCD suppliers, including Chinese electronic component maker BOE Technology Group and LCD panel maker AUO.
Samsung Display initially sought to shut down its LCD business by the end of 2020 , but the plan was delayed at the request of its parent company Samsung Electronics due to a sudden surge in LCD prices during the pandemic.
Samsung Display will no longer make LCDs for large TV screens, instead focusing on making organic light-emitting diode (OLED) and quantum dot (QD) displays. Employees in the LCD business are expected to be transferred to the QD business.
Samsung Display was originally established in 1991 as an LCD business unit under Samsung Electronics. It was officially launched under the name Samsung Display in 2012 and has since merged with three local and Japanese AMOLED manufacturers to produce advanced types of displays.
Samsung Display declined to comment.
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