In the news in tech, the smartphone-making giant Samsung has decided to shut down its LCD-making business for 31 years.
Samsung Display has recently transported its last major fabrication glass into its L8-2 line in its Asan campus in South Chungcheong Province, which produces large-size LCDs for TVs; this is the largest possible size of glass that a factory can manufacture that will not break under its weight.
Samsung Electronics first launched its LCD business in 1991 and beat Japanese competitors through slim LCD TVs. It ranked number 1 in TV panels in 2008.
However, SDC (Samsung Display Co.) is likely to exit this business after completing the 1.2 million panel target. This target is 93.8% less than last year’s 19.3 million units shipped. Samsung could also sell the L8-2 line and other equipment to Chinese manufacturers. It is ironic because one of the major reasons for Samsung’s exit is Chinese competitors in the same business with extremely low prices. The Chinese captured a 30.6 % share in 2018 and continue to increase to 50.7 % of the market.
Samsung is also facing the issue of a shortage of components and trying several mergers & acquisitions across the globe to advance in other areas of tech, especially memory & storage solutions, semiconductors and foundry business.
Samsung has already in between an M&A deal with LG for QD-OLED panel and has already started new investments in different world regions.
However, Samsung could extend the date of the complete shutdown seeing the demand for the large panels from tv makers and soaring high prices after the pandemic.
Samsung will also relocate staff to other Samsung Electronics display solutions businesses and QD-Oled & OLED production units.
Samsung has already put down the description of LCD tech on its website, a show of prowess in QD-OLED tech.
The shortage of components, extremely competitive prices, and a big decline in the LCD market is the reason for Samsung’sSamsung’s current withdrawal from the LCD business.
Samsung already has a diverse investment and is thinking of pushing through their QD-OLED TVs because saturation hasn’t settled yet in this area until the QD-OLED display becomes the norm.