Samsung Display will discontinue manufacturing LCD screens at the end of June, six months ahead of schedule. According to industry sources, the competition was too fierce, and Samsung Group wanted to cut its losses.
According to a report in the Korea Times, Samsung Display has decided to stop producing LCDs owing to a losing worldwide competitive advantage due to cheaper goods manufactured by Chinese and Taiwanese competitors. Since then, however, the corporation has made no more announcements about its investment strategy.
According to a forecast by Display Supply Chain Consultants (DSCC), a US industry research group, the average price index of LCD panels would decline to 36.6 in September this year, compared to 100 in January 2014.
The value is now 58 percent lower than the previous high of 87 in June 2021, set at 41.5 in April of this year.
Samsung had intended to liquidate its LCD business in 2020. Still, because of COVID-19 and the need for lower-cost home entertainment devices (including low-cost smartphones and tablets), the firm decided to postpone this significant move.
Samsung Display’s decision to keep making LCDs in South Korea for an indeterminate length of time overrode its March declaration that it would stop all manufacturing by the end of the year to concentrate on more sophisticated technologies.
According to Samsung Display, the duration of the extension would then be determined by market circumstances. It was previously said to contemplate a “short-term” extension in late October.
Company representatives were unavailable for comment, and no details on the investment plan were available.