Samsung Announces Withdrawal From LCD Panel Manufacturing

- Apr 04, 2020-

Samsung display will completely exit the LCD panel industry!Samsung display sent a letter to all its customers on Thursday, informing them of its decision to terminate all LCD products by the end of December 2020 in order to speed up the switch to QD display.As the LCD panel business has fallen into the red, samsung has decided to close all its LCD panel plants in South Korea by the end of this year. As for the mainland suzhou plant, the suzhou municipal government and huaxing optoelectronics both have shares, so samsung plans to sell its shares in the whole.

Samsung display large group enterprise minister Cui Zhou good 31 signed a letter to all customers, cover letter, the company in the business exhibition slightly on the matters of momentous changes occur, because the LCD market in recent years, severe recession, large sector business produce a massive deficit, the management in order to get rid of the crisis, as well as to improve the competitive power of the large enterprise officially started from last October QD display of investment.The company decided to terminate the supply of all LCD products by the end of December 2020 to accelerate the switch to QD display.

Samsung display has been out of the laptop and tablet panel business in the past few years, while the monitor panel is focused on higher-order product lines such as curved surface. The large-size panel is mainly made by the TV panel, and the large-size panel is made in the l7-2, L8 and suzhou 8.5 generation factory.At the end of last year, l7-2 and L8 in South Korea have been reduced by 30-40% of their production capacity.Samsung display owns about 60 per cent of SSL in suzhou, with the suzhou municipal government and huaxing optoelectronics each owning the remaining 30 per cent and 10 per cent. Samsung will sell its stake in the future.

Last year, China's panel factory 10.5 generation plant, 11 generation of new factory capacity opened a large number of, resulting in the collapse of the panel price, the annual average drop in the price of TV panel 20% ~ 30%, serious erosion of the panel factory profit.Panel tiger suffered gross losses in the fourth quarter of last year, totaling 36.6 billion yuan, and LGD suffered losses of more than 2.8 trillion won (nt $77 billion).

Samsung display last year had revenue of about 31.05 trillion won (nt $86.8 billion) and operating profit of about 1.58 trillion won (nt $42.58 billion).In terms of revenue, the contribution of AMOLED panels is as high as 70 to 75 percent, and AMOLED panels are the main source of profits, contributing more than 90 percent, the TV panel became a drag on profit loss goods.Samsung AMOLED panel is a major supplier of AMOLED panel to samsung electronics and apple, with a global market share of more than 80%. With the support of this golden rooster, samsung dare to break off the LCD panel and stop the loss.