Samsung has decided to completely withdraw from the LCD business

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With the rise of Chinese manufacturers (BOE, AUO, Innolux, etc.) in recent years, LCD prices have fallen rapidly, which has accelerated the decline of Samsung LCD’s global competitive advantage, and finally made the decision to adjust the production line. According to Korea Times reports, Samsung decided last Sunday that it will close its last 8.5-generation LCD panel production line in South Korea in June 2022 and completely withdraw from the LCD business.

Samsung’s latest decision comes six months ahead of schedule, largely due to business losses caused by falling LCD panel prices. According to the US market research company Display Supply Chain Consultants (DSCC), if the average price index of LCD panels in January 2014 is set at 100, it will drop to 36.6 by September this year, a record low. In June 2021, the figure was 87, which is a 58% drop.

However, the timetable for Samsung’s exit from the LCD business has been later than originally planned. Samsung had planned to exit the LCD business by the end of 2020, but the outbreak of the COVID-19 epidemic has caused a sudden surge in LCD panel prices, causing Samsung to delay the planned timetable. Samsung itself will continue to purchase LCD panels, but suppliers will switch to BOE and AUO to lower prices and improve competitiveness.

In the future, Samsung itself will turn its attention to panels using organic light-emitting diode (OLED) and quantum dot (QD) technologies, and it is expected that employees from the existing LCD business will be transferred to the QD business unit. Samsung is also constantly developing new display technologies for use in high-end TVs, such as the new Micro LED TVs recently released.

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