Samsung Display has decided to cut its LCD production unexpectedly by July 2022. The stoppage was originally planned for December, but it can now take place as soon as the end of this month.
According to insiders, Samsung’s competition has been quite harsh, and the company wanted to avoid further losses.
Keeping in view previous Display Supply Chain Consultants (DSCC) reports, the price of LCD panels is only 36.6 per cent of what it was in 2014, when production was at its peak. BOE, a Chinese display manufacturer, and AU Optronics, a Taiwanese company, are also offering lower prices to customers.
Samsung had planned to exit the LCD business in 2020, but lockdowns caused by the COVID-19 pandemic increased demand for home entertainment on low-cost devices like affordable TVs and smartphones. As a result, Samsung was forced to postpone this significant step.
Samsung officials have yet to respond to a request for comment, but we expect to learn more about the shutdown’s financial implications in July when the tech giant releases its Q2 earnings report.
As per the Korea Times, people’s interest in LCDs has waned, while they are increasingly drawn to display technologies such as Quantum Dot and OLED.
A US market research firm also revealed the LCD panel price index has fallen dramatically since late 2021 and is now down 60 per cent year on year.
Moreover, in recent years, smartphones have also shifted from LCD displays to OLED displays.
