Samsung will completely withdraw from the LCD panel business in June to accelerate OLED investment

On May 30, according to Korean media reports, relevant industry sources said that Samsung Display (Samsung Display) has decided to close its liquid crystal display panel (LCD) business in June because of the products produced by panel makers in mainland China and Taiwan. More price advantages have led to a decline in Samsung Display's global competitiveness in the LCD panel business.

Samsung Display's latest decision to shut down six months earlier than expected is largely due to the rapid loss of business due to falling prices for LCD panels.

In addition, Samsung Electronics, as the largest buyer of Samsung display products, has reached cooperation with LCD panel suppliers such as BOE and AUO, which is also one of the reasons for the early closure of Samsung Display's LCD business.

Previously, Samsung Display planned to shut down its LCD business by the end of 2020, but parent company Samsung Electronics requested a delay in the plan due to a sudden surge in LCD panel prices during the new crown epidemic.

It is reported that after the closure of the LCD business, Samsung Display will no longer produce LCD panels for large-scale TVs, and instead focus on manufacturing organic light-emitting diode (OLED) and quantum dot (QD) display panels, and employees from the LCD business are expected to transfer to the QD business. department.

According to the data, Samsung Display was originally established in 1991 as the LCD business unit of Samsung Electronics. In 2012, it officially appeared under the name Samsung Display, and has since merged with three local Korean and Japanese active-matrix organic light-emitting diode (AMOLED) manufacturers to produce advanced types of displays.

Market competition has intensified, prompting Samsung to officially shut down its LCD panel business. Since then, Samsung's self-sufficiency model of LCD TV panels has officially ended, and instead, the procurement model has been adopted to reduce the production cost of LCD TVs and increase its market share and price competitiveness in LCD TVs.

In addition, Samsung is also continuously promoting the application of new display technologies on TVs to open up the high-end segmented market and expand its development layout in the TV industry.

After the official launch of the 110-inch Micro LED TV recently, Samsung is also stepping up its production and sales plans for 100-inch and 89-inch products.

According to Korean media reports, Samsung Electronics will mass-produce the world's first 89-inch Micro LED TV in September. It is reported that for the 89-inch Micro LED TV, Samsung Electronics is developing a sales and marketing strategy, aiming to launch it in the third quarter of this year.

According to sources, Samsung Electronics plans to start mass production of 89-inch products at its Vietnam factory in September. Previously, the 89-inch Micro LED TV was planned to be launched in the first half of this year. However, due to the explosive growth in demand for commercial micro-LED displays and the COVID-19 outbreak that led to the shutdown of factories in Vietnam, the Micro LED production capacity was insufficient, so the 89-inch launch plan was postponed.

Last year, Samsung completed the expansion of its Mexican factory and expanded its production capacity to the Slovakian factory earlier this month. The production capacity of the Vietnamese factory was freed up for the production of 110-inch and 89-inch Micro LED TVs.