In recent years, due to the oversupply of the LCD panel market, its prices have continued to decline, which has affected the performance of panel companies. To this end, Samsung and LGD manufacturers in South Korea have adjusted their business strategies and gradually withdrew from the LCD market to shift to the new display market.
On March 31, Cui Zhoushan, Minister of Large-scale Business of Samsung Display, officially explained the major changes in the company's LCD panel business strategy.
Cui Zhoushan said, "Our company has experienced a large-scale deficit due to the severe downturn in the LCD market in recent years. In order to get rid of the current business crisis and improve the competitiveness of large-scale businesses, our company started from October last year. The investment of QD Display officially started. In addition, our company decided to terminate all LCD product supply by the end of December 2020 in order to accelerate the transition to QD Display business. "
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However, Samsung Display also stated that orders within this year will continue to be fulfilled, and customers who have placed orders will not have supply problems.
It is understood that Samsung currently has two LCD production lines in South Korea and two LCD panel factories in China. Samsung ’s latest statement means that two LCD panel factories in China will also close this year and will completely exit the LCD market next year.
As early as last October, Samsung Display announced that due to market demand for liquid crystal displays and gluts, the company decided to shut down two LCD panel production lines in South Korea.
At the same time, Samsung Display also said that it will invest 13.1 trillion won (10.72 billion US dollars) to upgrade the current production line. The investment in the next five years will focus on transforming an LCD production line in South Korea into a production line capable of mass production of QLED panels.
In addition to Samsung, Korean panel maker LGD also announced that it will close all LCD panel factories in South Korea by the end of this year and gradually switch to the production of OLED panels. South Korea's Samsung Display and LGD exit the LCD panel market, which is a good opportunity for domestic panel manufacturers. It is hoped that domestic manufacturers will seize the opportunity to strengthen the R & D of high-end display technology while consolidating the LCD market, in order to further enhance the company's competitiveness. (Proofreading / Lee)
