Samsung closes LCD production six months ahead of schedule

Samsung Display will discontinue LCD production at the end of June, six months ahead of the previously announced schedule. According to reports, the competition was too cutthroat and Group wanted to limit damages.

It’s Display will focus on the production of OLED and QD (quantum-dot) panels and its workers are anticipated to be transferred to the QD business.

Samsung LCD production: Highlights

Samsung’s display-making subsidiary, It’s Display firstly decided to shut down its LCD business by the end of 2020. The company was compelled to reconsider after the demand for LCD panels increased in the post-pandemic (Covid-19) period. In 2021, more reports indicated that the company again decided to stop producing LCD panels, but it didn’t stop making them.

However, according to a report by Sammobile, its Display is now finally ready to shut down its LCD production. The report also indicates that it is now buying LCD panels from China.

Move to OLED among other reasons

According to the report, they might be planning to shut down LCD panel production in June as it doesn’t ally with Samsung Display’s long-term goal for the business. The company plans to imitate LCD panels with Quantum Dot (QD-OLED) displays as it is presently remodeling an archaic LCD plant to manufacture OLED panels.

The company is not happy to battle in a market that’s controlled by inexpensive panels from Chinese and Taiwanese counterparts. The falling prices of LCD are also averting them from continuing production, the report claims.

Samsung Display’s biggest buyer was the consumer electronics arm of the conglomerate, Samsung Electronics. However, the company itself is choosing low-cost LCD panels from Chinese and Taiwanese suppliers. Samsung Display is anticipated to mainly focus on manufacturing Quantum Dot and OLED displays after its LCD business shuts down. The workers appointed for the LCD production are also likely to be transferred to the QD division.