Samsung has decided to extend the production of LCD panels in South Korea. The company wanted to increase its focus on newer technologies, but after increased demand due to the coronavirus, its plans changed.
In March, Samsung announced that it would cease production of LCD panels completely in order to focus more on quantum dot and OLED panels. Later, the company sold one of its LCD plants in China to TCL.
Increased demand due to the corona pandemic
Nevertheless, the market for LCD panels has picked up again, with many people sitting at home during the coronary pandemic. As a result, this market, which usually has thin margins, has become more profitable again, Reuters writes.
The market for display panels increased by 30 percent during the corona pandemic, mainly driven by increased demand for laptops. Due to increased competition from Chinese panel manufacturers, Samsung probably won’t benefit for much longer.
It is not clear how long the company intends to continue producing LCD panels. The expectation is that the company will turn its back on the panels as soon as profitability decreases again. In October there was talk of just a ‘short term’ extension of production.
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