Samsung to Stop LCD Production in June End, Prepones Planned Deadline by 6 Months: Report


Samsung Display will stop producing LCD screens at the end of June, six months earlier than a previously planned deadline. Industry insiders revealed that competition has been very strong, and the Samsung group wants to cut its losses.

According to a report in the Korea Times, Samsung Display has made the decision to end production of LCD panels that have been bogged down by reduced global competitive advantage due to cheaper products made by their Chinese and Taiwanese counterparts. However, the company has not announced any details of the investment plan since then.

A report by Display Supply Chain Consultants (DSCC), a US market research firm, said that the average price index for LCD panels, measured against 100 in January 2014, will drop to 36.6 in September of this year. The number fell further from the record low of 41.5 in April this year, and 58 percent below the record low of 87 in June 2021.

Samsung had previously planned to shut down its LCD business in 2020, but due to COVID-19 and the demand for cheaper home entertainment devices (including low-cost smartphones and tablets), the company postponed this major move.

Samsung Display’s decision to extend LCD production in South Korea for an indefinite period has gone beyond its announcement in March that it would end all production by the end of the year to focus on more advanced technologies. Samsung Display then announced that the length of the extension will depend on market conditions. It had said in late October that it was considering a “short-term” extension.

Company employees were not available for comment, and there is information about the details of the investment plan at this time.


Leave a Reply

x
%d bloggers like this: