After announcing last week that it was considering spinning off its LCD division, Samsung Electronics Co. has announced that it plans to set up the new company, Samsung Display Co., on April 1. According to this piece by Bloomberg, the new company will be set up with750 billion won in paid-in capital.
Samsung’s LCD business division had been facing an increasingly low profit, commoditised market. This move will allow them to move away from LCD to focus on OLED technology which is forecast to become a larger and larger part of the display market. The article also speculates that the new spinoff company may merge with Samsung’s mobile OLED manufacturer Samsung Mobile Display.
LCD display manufacturers are facing decreasing profit margins and increasing competition from low cost manufacturers. However, the OLED display market may grow to account for 16 percent of the total panel market, from an estimated 4 percent last year, according to display-market researcher DisplaySearch.
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