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Samsung sells off LCD equipment to focus on OLED production

Samsung sells off LCD equipment to focus on OLED production

By BizLED Bureau

Nov 17, 2015: Samsung has shut down a large LCD display operation and will now concentrate full time on OLED-based products.

Its facility in Cheonan, South Chungcheong Province, has shut down its L5 line, the fifth generation of LCD displays, and begun selling the equipment to other manufacturers.

Since OLED is now rolling out in phones and big-screen TVs, the company took this decision and sold off its fourth generation production line to a Chinese company.

However, there is still a huge market for these old stuff in lower-end electronics.

The Cheonan factory will most likely be used to make OLED products, with talk of deals for AMOLED phone displays for Huawei and its relationship with Apple said to be behind this decision.

Samsung still operates three LCD production lines, but analysts question whether this is the beginning of a move to OLED production only. And if this is the case, what effect that will have on the company as demand for cheaper LCD screens continues, with production ramping up in China.

The company has lost market share in the end user market with recent Galaxy products not selling as well as their predecessors used to. As such these component deals are the lifeline of the business, with a contract to produce high-end screens for Apple alone worth billions.

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