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Samsung spins off OLED business as it plans exit for LCDs

By Cookie Monster - on 5 Jul 2016, 1:00am

Samsung spins off OLED business as it plans exit for LCDs

 The Samsung Galaxy S7 and S7 edge sport Super AMOLED displays.

As part of a company-wide streamlining effort, Samsung is reportedly spinning off its OLED business division and deploying more staff from Samsung Display's workforce into the OLED business unit. 

An official told the Korea Times that the decision was made to restructure unprofitable businesses, which hints that its LCD business unit is facing a bleak future. Apparently, Samsung is said to be exploring ways to minimize the falling demand for LCD displays due to the competition from low-cost Chinese manufacturers. 

While some of its LCD lines are being shut down, another Samsung official claims that the LCD business unit may be acquired to keep its TV business running. However, it seems that Samsung is planning an exit strategy for LCDs. 

Samsung is reported to have installed manufacturing equipment for large OLED panels by Q3 2016 and this could see the production of more OLED TVs in 2017. In addition, the Korea Herald stated that Samsung has signed a deal with Apple to supply 100 million units of OLED panels from 2017.

Source: Korea Times via SamMobile