The Chicago Journal

Samsung to Push LCD Manufacturing Shutdown Ahead of Schedule

Display has become an essential topic for mobile devices and other gadgets as enthusiasts are often divided between LCD and OLED. While LCD has been more prominent for the past decade, OLED has slowly become a favorite. Samsung Display, a major player in the LCD production industry, announced plans to shut down LCD production in 2020, but the execution had been put off for a scheduled date for 2022. But once again, plans changed for Samsung Display.

Samsung Display shocked the world when it announced that it would be shutting down its LCD production at the end of June, pushing its previous plans earlier than expected. Industry leaders revealed that their decision came when they saw the competition was getting too fierce, prompting them to limit their losses.

The company previously announced its plans to discontinue LCD production towards the end of 2020, but nothing came of it. Instead, Samsung decided to shut down LCD productions at the end of 2022 due to the price rise of LCD panels, which initially started in June 2020. 

The LCD business was scheduled to shut down due to the onset of the global pandemic. However, there was a need for affordable devices for home entertainment, work from home, and online classes, prompting Samsung to postpone the shutdown.

Samsung Display then extended production of the LCD panels, accommodating the request of Samsung Electronics, which still asked to receive LCDs. Samsung was then forced to increase its bargaining power with Chinese panel makers like BOE and CSOT.

Reports from Display Supply Chain Consultants revealed that LCD prices were 36.6% of what they used to be in January 2014, the component’s peak production period. The movement was stirred by BOE from China and AU Optronics from Taiwan, who joined the battle and offered lower prices to clients.

Samsung representatives were unavailable for comment, leaving the majority of the information in investment plan details in the shadows, according to GSM Arena. However, they expect to get more details once the second quarter concludes and earnings reports come out in late July.

Instead, the company will focus on manufacturing OLED and quantum-dot or QD panels, with employees expected to be transferred to the QD business.