Samsung Officially Spins Off LCD Business
February 20, 2012 10:06 AM
comment(s) - last by
The company will be called Samsung Display Co Ltd
Samsung has announced today that its board of directors has approved the spinoff of Samsung's LCD arm. The new company will be a wholly owned subsidiary of Samsung Electronics. Samsung also notes that moving forward, the new LCD company it has created will consider other restructuring measures such as a merger was Samsung Mobile Display and S-LCD Corporation.
This move comes at a time when profits are slipping significantly in LCD market. Samsung has been increasingly losing money on LCD screens even though it's the world's largest maker TVs. Samsung will shift its focus to new OLED panels moving forward, which are growing significantly and generating much larger profits.
Research company DisplaySearch estimates the global sales of LCD TVs are going to shrink by 8% to about $92 billion by 2015. At the same time, that OLED market is expected to grow to $20 billion by 2018 and make up 16% of the total display market. Today, OLED panels make up only 4% of the market.
The Samsung LCD spinoff is expected to be called Samsung Display Co Ltd and will be launched as new business on April 1. The company will have 750 billion won in capital according to Samsung. Samsung is positioned well in the OLED market with its Samsung Mobile Display providing almost all the OLED panels available. Samsung notes that the spinoff is still subject to regulators and the approval of shareholders.
In December of 2011, Sony split from the
LCD joint venture
it operated with Samsung due to poor profits. Other LCD manufacturers like Sharp have significantly reduced LCD output. Three of the top firms in LCD market -- Panasonic, Sony, and Sharp -- are together expected to lose $17 billion this year alone.
This article is over a month old, voting and posting comments is disabled
What about Plasma?
2/20/2012 9:57:10 PM
Since LCD is losing money, how about Plasma TVs?
Any idea if Plasma is bleeding too?
"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook
Sony Sells LCD Panel Joint Venture Shares to Samsung
December 26, 2011, 11:31 AM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Ancient Aliens? 11.2 Billion Year Old Solar System Discovered
January 29, 2015, 12:09 PM
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information