Report claims Samsung is pulling out of its LCD business earlier than expected

Samsung will stop manufacturing LCD panels as early as next month, according to industry insiders quoted by The Korea Times.

In 1991, a division called Samsung Display was established to manufacture the panels used in parent company Samsung Electronics products. Subsequently, it became a leading supplier of LCD panels not only for Samsung Electronics, but also for other companies in the industry.

The business was put on hold when the pandemic led to a global increase in demand for consumer electronics, but now that demand is declining and forecasts are not good for LCD panel revenue.

Add to that the fact that new technologies like QD-OLED are the future of TVs and monitors, and the case for Samsung Display’s continued LCD business becomes a tough one.

It was previously reported that Samsung planned to close the business at the end of 2020, but The Korea Times claims a faster-than-expected drop in consumer demand has accelerated the timeline.

Samsung Display will now focus heavily on OLED and quantum dot panels. The majority of employees working in the LCD business will switch to quantum dots, the publication claims.

The Korea Times has accurately reported stories like this before, but sometimes misses, so stay tuned for the official statement from Samsung.

Even if there are no announcements of a change of direction, there is something wrong written on the wall for Samsung’s LCD business. Unless things change radically, it’s more of a question of when, not if at the moment.